2005 Environmental and Social Report

2005 Environmental and Social Report
Environmental and Social Report
2005
About the Cover
Environmental and Social Report
2005
Reach for the Sun!
All life on earth is born and lives
thanks to the gift of light from the sun.
Today, however, human beings are
destroying the earth’s environment and
putting the very existence of countless
irreplaceable life forms in danger.
The human race must pool its wisdom
to solve this problem. Sharp must
protect our beautiful earth by making
use of the clean energy that radiates
from the sun. It was with feelings such
as these that we designed the cover of
this report.
On the right is an enlarged, retouched photo
of a Sharp polycrystalline silicon solar cell.
Compiling This Report
From “Environmental Report” to “Environmental and
Social Report”
Sharp has published an Environmental Report every year since
1999. This year’s edition contains expanded coverage of the social
aspects of Sharp’s business activities. The title has therefore been
changed to “Environmental and Social Report.”
This Environmental and Social Report consists of three sections:
Special Feature, Sharp and the Environment, and Sharp and
Society.
The first section is a special feature that examines three topics that
are priority business areas for Sharp: photovoltaic power
generation, LCDs, and environment- and health-conscious home
appliances. The report describes how Sharp strives for
technological development, and the past, present and future of their
manufacturing and social aspects. The “Sharp and the
Environment” section covers Sharp’s environmental efforts
focusing on policies, objectives and achievements. “Sharp and
Society” is divided into chapters for each stakeholder, that is,
customers, shareholders, investors, business partners, employees
and the community, and it outlines Sharp’s efforts in each of these
areas.
Note: This report provides only a summary of the economic aspects of Sharp’ s
business activities. For details, please see Sharp’s Annual Report 2005.
A Commitment to Following the PDCA Cycle
Sharp’s environmental reports are committed to following the
PDCA cycle (plan, do, check, act). In future editions, Sharp will
further improve on this point.
Links between This Report and Sharp’s Web Site
This report has been edited with focus on the main points to
facilitate an understanding of the full picture of the Sharp Group’s
environmental and social activities. Actual examples and detailed
data can be found on Sharp’s Web site
(http://sharp-world.com/corporate/eco/report). Items that are
covered on the Web site display this icon
after the text of the
report. The last page of this report lists the items covered on the
Web site.
WEB
Period Covered: Fiscal 2004 (April 2004 to March 2005)
However, some actual results prior to this period, as well as
subsequent plans, goals and policies will also be included.
Coverage: Environmental, social and economic aspects of Sharp
Corporation along with its domestic and overseas subsidiaries and
affiliates.
Organizations Covered: Sharp Corporation along with its
domestic and overseas subsidiaries and affiliates.
Note that the scope of environmental performance data contained in
this report is as follows:
Sites (companies) covered by Environmental Performance Data
Sharp Corporation and consolidated subsidiaries. Note that the
category “production sites (companies)” includes non-consolidated
subsidiaries and affiliated companies, while “non-production sites
(companies)” exclude those with less than 30 employees.
Production sites (companies) 38 (16 domestic, 22 overseas)
Non-production sites (companies) 31 (10 domestic, 21 overseas)
Referenced Guidelines:
• Environmental Reporting Guidelines (Fiscal Year 2003 Version),
Ministry of the Environment, Japan
• Sustainability Reporting Guidelines 2002 (Japanese), Global
Reporting Initiative (GRI)
• Environmental Accounting Guidelines 2005,
Ministry of the Environment, Japan
• Environmental Performance Indicators for Business
(Fiscal Year 2002 Version), Ministry of the Environment, Japan
Scheduled publication date for next report: July 2006 (published
annually since 1999)
Future Forecasts, Plans and Goals
This report describes the past and present situation of the Sharp
Group, as well as future forecasts, plans and goals. Sharp will make
its best effort to ensure that these forecasts, plans and goals are
reached. However, please note that they are assumptions and
judgments based on information available at the time this report
was written, and incorporate a degree of uncertainty. Consequently,
there is a risk that events occurring in the future, such as the results
of business activities, may turn out differently from the forecasts,
plans and goals noted in this report. Sharp asks the kind
understanding of the reader in this matter.
For inquiries on this report please contact the following
groups of Sharp Corporation
Environmental Protection Group Tel: +81-6-6625-0438 Fax: +81-6-6625-0153
CSR Promotion Department
Tel: +81-6-6625-1167 Fax: +81-6-6625-1274
22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
E-mail: [email protected]
1
Sharp Environmental and Social Report 2005
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Sites (companies) covered by the environmental performance data
■ GRI content index
The Roots of Sharp’s Corporate Social Responsibility (CSR)
Sharp Contributes to Society Through
“Sincerity and Creativity”
Sharp Corporation began in 1912 when founder
Tokuji Hayakawa started a metalworking shop in
downtown Tokyo. Hayakawaʼs company came
out with a number of original products, including
the Ever-Sharp Pencil, the origin of the company
name, and Japan s first radio and TV.
Hayakawaʼs favorite saying was “Make products
that others want to imitate.” This meant a
company should be the first to come out with
never-before-seen products that meet the needs
of the next generation. His wish was to contribute
to society by building on originality to create
products that bring people happiness.
In 1973, we put Hayakawaʼs spirit into our
business philosophy and business creed. Our
business philosophy states the kind of company
we aim to be, while the business creed states
that we must always follow a belief of “Sincerity
and Creativity” in order to achieve the goals of
our business philosophy. The spirit embodied in
our business philosophy and business creed has
been carried on by generations of Sharp leaders
to this very day, as we seek to be original in all
that we do, carrying out a corporate strategy that
brings prosperity for both Sharp and all its
stakeholders.
Recent years have seen a focus on the concept
of CSR* as companies make social responsibility
a key part of their management. Sharpʼs
business philosophy and business creed are the
roots of the companyʼs CSR and represent
guiding principles passed on over the years.
* CSR : Corporate Social Responsibility
Sharpʼs decentralized photovoltaic power system in Noyon, Mongolia
Business Philosophy
We do not seek merely to expand our business volume.
Rather, we are dedicated to the use of our unique, innovative
technology to contribute to the culture,
benefits and welfare of people throughout the world.
It is the intention of our corporation to grow
hand-in-hand with our employees,
encouraging and aiding them to reach their full potential
and improve their standard of living.
Our future prosperity is directly linked to the prosperity of
our customers, dealers and shareholders...indeed,
the entire Sharp family.
Business Creed
Sharp Corporation is dedicated to two principal ideals:
“Sincerity and Creativity”
By committing ourselves to these ideals,
we can derive genuine satisfaction from our work,
while making a meaningful contribution to society.
Sincerity is a virtue fundamental to humanity...
always be sincere.
Harmony brings strength...
trust each other and work together.
Politeness is a merit...
always be courteous and respectful.
Creativity promotes progress...
remain constantly aware of
the need to innovate and improve.
Courage is the basis of a rewarding life...
accept every challenge with a positive attitude.
Sharp Environmental and Social Report 2005
2
Contents
Using One-of-a-Kind
Technologies to Become an
Environmentally Advanced
Company
1
The Challenge of Broadening the
Use of Solar Energy
10
2
11
A Message to People and the Earth ..............................................
Outline of the Sharp Group ................................................................
5
7
Special Feature ............................................................................ 10
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
3
1
The Challenge of Broadening the Use of
Solar Energy ..................................................................................... 11
2
The Next Phase of Sharpʼs LCD Business
3
The Environment, Health and Safety—
“One-of-a-Kind” Products in the Years to Come ........ 23
Sharp Environmental and Social Report 2005
.................... 17
The Next Phase of Sharpʼs LCD Business
17
3
The Environment, Health and Safety—
“One-of-a-Kind” Products in the
Years to Come
Sharp and the Environment
23
Sharp and Society
30
56
........ 30
Sharp and the Environment .................................... 56
Sharp and Society Fundamental Orientation and
Vision Concerning the Environment ................... 31
Major Objectives and Fiscal 2004 Results ............ 33
Fulfilling Corporate Social ........................................ 57
Responsibilities (CSR)
In Pursuit of Becoming an Environmentally
Advanced Corporate Group
Advancing Super Green Management ........................
How Business Activities Relate to the
Environment .....................................................................
Developing Super Green Technologies ......................
Creating Super Green Products
and Devices .....................................................................
Achievement of a Super Green Factory .....................
Reducing Greenhouse Gas Emissions .......................
Minimizing and Recycling Waste ..................................
Appropriate Management and Reductions in the
Discharge Risk of Chemical Substances ................
Promoting Risk Management .........................................
35
39
41
43
45
47
48
49
50
Environmentally Conscious Logistics
and Packaging ................................................................. 51
Recycling Used Products ................................................ 53
Promotion of Environmental
Communication ............................................................... 55
In Pursuit of Becoming a Corporate
Group Trusted by Society
For Customers .............................................................. 58
Enhancing Customer Satisfaction
Reinforcing Information Security
For Shareholders and Investors ............................ 62
An Appropriate Return of Profits
For Business Partners ................................................ 63
Mutual Prosperity with Suppliers and Dealers
For Employees ............................................................... 65
A Fair and Rewarding Workplace
A “Safety First” Work Environment
For Local Communities ............................................. 68
Social Contribution Activities
Third-Party Review ........................................................ 71
Information Posted on Sharpʼs Web Site ............. 72
Sharp Environmental and Social Report 2005
4
A Message to People and the Earth
Pursuing Sustainable Growth by Becoming a
“Zero Global Warming Impact Company”
Katsuhiko Machida
President, Sharp Corporation
Sharp will achieve “zero global warming
impact” by 2010.
setting a medium-term goal of becoming an
“environmentally advanced company”.
As we entered 2005, the Kyoto Protocol went into
effect in February, and Expo 2005 Aichi Japan began
in March under the theme of “Nature’s Wisdom.”
These events, which represent the full-fledged start of
the “Era of the Environment,” emanated from Japan to
the world.
Specifically, Sharp will first accelerate its efforts to
develop environmentally friendly technologies that
contribute to protecting the global environment, and
by applying the results of that development, create
environmentally conscious products.
Global environmental problems, particularly global
warming, is a critically important issue that can only
be tackled by marshaling the collective wisdom of all
humankind. I feel that Japanese companies, with their
superior technological development, should play a
major role in this effort.
In 2004, Sharp defined its corporate vision to be a
company that has “zero global warming impact by
2010”. This is a concept to limit to the greatest extent
possible the amount of the greenhouse gas emissions
resulting from Sharp’s business activities around the
world, while at the same time, significantly increasing
reductions in greenhouse gas emissions based on the
energy-creating effects of solar cells and the
energy-saving effects of new products manufactured
by Sharp. The idea is for the amount of greenhouse
gas emissions reduced to exceed the amount emitted
by fiscal 2010*1.
5
In fiscal 2004, production of energy-creating solar
cells expanded significantly by 64% over the previous
year, and Sharp remained the world leader in this
field*2 for five years in a row. The number of “Green
Seal” products*3 offering superior environmental
performance also increased dramatically to 188
models, accounting for 74% of sales (compared to 145
models and approximately 54% of sales in the
previous fiscal year). Among these, new AQUOS
LCD TV models and new air purifiers cleared the
strict new standards for Sharp’s unique “Super Green
Products”*3. Also, sales of “Green Devices”*3, for
which the company began full-scale efforts in fiscal
2004, significantly exceeded our goal of 24% of total
sales.
Sharp will pursue sustainable growth by further
strengthening efforts toward the environment.
In the future, by further strengthening R&D on solar
cells, improving their energy conversion efficiency,
reducing their cost, and developing new products that
will lead to new applications, Sharp will dramatically
increase and broaden the use of photovoltaic power
generation. In addition, for new products in all
categories, particularly LCD TVs, refrigerators and air
conditioners, Sharp will work for further improvement
of environmental performance, in particular,
delivering still higher levels of energy efficiency.
In addition to this corporate vision, Sharp is giving the
highest priority to protecting the environment by
At the same time, Sharp is advancing efforts to
minimize environmental impacts at its production
Sharp Environmental and Social Report 2005
facilities by setting certification standards for Sharp’s
unique “Green Factories”*4 and “Super Green
Factories”*4 based on 21 environmental performance
evaluation parameters and strict evaluation standards.
In fiscal 2004, all of Sharp’s production sites in Japan
exceeded standards for Green Factories. And the Mie
Plant was certified as a Super Green Factory as the
first existing plant following the Kameyama site last
year.
In the future, too, Sharp plans to expand production,
focusing on energy-creating and energy-saving
products, while continuing its efforts to reduce the
environmental impact of its plants. The company
plans to make all its production sites (companies)
Green Factories by fiscal 2007, including those
overseas.
Centered on these efforts, Sharp is pursuing to become
an environmentally advanced company that achieves
sustainable growth, allowing the company to expand
its business while protecting the global environment.
foundation of the corporate social responsibilities
(CSR) Sharp is expected to fulfill.
When I assumed the presidency of Sharp in 1998, I set
forth the concept of “one-of-a-kind management,”
embodying the idea of contributing to society by
making products the world has never before seen, that
no one else has made.
Since then, by manufacturing built on our proprietary
technologies, Sharp has offered innovative new
products and lifestyles, and has put into effect
management practices that aim for the prosperity of
everyone the company works with (stakeholders) in
every process of its business activities.
This year’s report contains expanded content on social
issues. The title has accordingly been changed from
“Environmental Report” to “Environmental and Social
Report.” By reading it together with our Annual
Report, it is my hope that readers will gain an overall
understanding of our business activities, covering the
environmental, societal and economic aspects of the
Sharp Group.
We look forward to hearing your candid opinions.
Sharp will engage in management practices that
aim for mutual prosperity with all stakeholders
in every process of its business activities.
In 1973, Sharp clearly stated its attitude as a company,
practiced and fostered since its founding, in the form
of its business philosophy and business creed. The
concept of contributing to society through making
products, and by dedicating ourselves to the two
principles of “Sincerity and Creativity” is what lies at
the root of Sharp, and as a manufacturer, it forms the
June 2005
For details, please see the following pages:
*1: p. 32
*2: p. 12
*3: p. 43, 44
*4: p. 45, 46
*3 *4: Sharp certifies its products, devices and factories as “Green Seal,” “Green” or
“Super Green” based on proprietary assessment criteria and certification standards.
Sharp Environmental and Social Report 2005
6
Outline of the Sharp Group
A Fusion of Products and Electronic Components
Sharp’s business activities comprise “Consumer/Information
Products” that supply consumer electronics and information
products, and “Electronic Components” that provide the key
components of electronic products.
By undertaking the development of both key devices based
on proprietary technologies and their application products,
Sharp aims to inspire and impress customers by bringing
forth never-before-seen one-of-a-kind products and devices,
and by pioneering new markets.
Corporate Profile
Name
Head Office
Representative
Founded
Operations
Capital Stock
Number of
Employees*
Sharp Corporation
22-22, Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
Katsuhiko Machida, President
1912
Manufacture and sales of audio/video, communication
and information equipment, home appliances, LCDs,
solar cells, ICs, etc.
204,675 million yen
(any fractional sum of less than a million yen is discarded)
46,751 (29,437 in Japan; 17,314 overseas)
As of March 31, 2005.
* Sharp Corporation and its consolidated subsidiaries
■ Main Products
Audio/video and communication equipment
LCD* color TVs, color TVs, TV/VCR combos, LCD projectors, digital
broadcast receivers, DVD recorders, DVD players, VCRs, 1-Bit digital
audio products, MD players, portable CD stereo systems, CD
component systems, fax machines, phones, mobile phones
* LCD: liquid crystal display
ICs
Flash memory, combination memory, CCD/CMOS imagers,
LSIs for LCD, analog ICs, microcomputers
LCDs
Home appliances
TFT LCD modules, duty LCD modules, system LCD modules,
EL display modules
Refrigerators, Water Ovens (superheated steam ovens), microwave
ovens, air conditioners, washing machines, drum-type washer/dryers,
vacuum cleaners, kerosene heaters, electric heaters, home network
control units, air purifiers, dehumidifiers, small cooking appliances,
dishwashers, kitchen waste composters
Solar cells
Information equipment
Solar cells, photovoltaic modules
Other electronic components
PCs, PDAs, electronic dictionaries, calculators, POS systems,
handy data terminals, electronic cash registers, workstations,
LCD color monitors, PC software, digital copier/printers, electrostatic
copiers, PC peripherals including color scanners, supplies for copiers
and printers, FA equipment, CAD systems, ultrasonic cleaners
7
Sharp Environmental and Social Report 2005
Electronic tuners, RF/infrared data
communication units, network
components, components for
satellite broadcasting, laser diodes,
hologram lasers, DVD pickups,
optoelectronics, regulators, switching
power supplies, LEDs
Fiscal 2004 Financial Results
In Japan, fiscal 2004 started with positive economic factors.
However, towards the end of the period, the economy
slowed down. Overseas, the US and Asian economies
continued a steady expansion. Recovery has been seen in
European economies.
Sharp strived to expand LCD business such as by increasing production capacity at the Kameyama Plant. As for
photovoltaic power systems, Sharp expanded production
capacity of solar cells in response to growing worldwide
demand.
During fiscal 2004, in the Consumer/Information Products
business, the Sharp Group worked to further expand sales
of LCD TVs by enhancing the product line-up of large-size
models. Other efforts included an enhancement of unique
products, such as 3G mobile phones equipped with Sharp’s
original high-value-added LCDs, and a Superheated Steam
Oven, which roasts food using water in the form of
superheated steam. In the Electronic Components business,
As a result, fiscal 2004 recorded consolidated net sales of
2,539.8 billion yen, an increase of 12.5% over the previous
fiscal year. Operating income was 151.0 billion yen, up
24.1% and net income was 76.8 billion yen, up 26.6%, both
over the previous fiscal year. These figures represent record
highs for Sharp.
■ Net sales, operating income and net income (consolidated)
■ Net sales, operating income and net income (non-consolidated)
Net sales
(billions of yen)
Net sales
(billions of yen)
Operating income, net income
(billions of yen)
200
3,000
Operating income, net income
(billions of yen)
160
2,400
2,084.9
2,539.8
2,400
151.0
2,257.2
1,602.9
121.6
1,803.7
105.9
1,200
1,552.2
120
99.4
76.8
2000
54.6
40
32.5
Net sales
2001
Operating income
40
34.9
28.4
10.2
2002
2003
Net income
2004
0
(fiscal year)
■ Net sales by product group (consolidated)
Other electronic
components 10.0%
Electronic
Components
37.0%
80
48.3
11.3
0
69.6
80
600
38.5
97.9
76.7
72.4
60.7
600
120
1,372.3
1,200
73.5
124.8
1,804.9
1,800
2,003.2
2,012.8
1,800
160
LCDs
21.4%
ICs
5.6%
Information
equipment
16.4%
0
Net sales
2000
2001
Operating income
2003
Net income
2004
0
(fiscal year)
■ Net sales by region (consolidated)
Consumer/
Information
Products 63.0%
Audio/video and
communication
equipment
38.3%
2002
Other
8.8%
Overseas
47.6%
Europe
16.0%
Asia
8.2%
Japan
52.4%
Domestic
52.4%
Americas
14.6%
Home appliances
8.3%
Sharp Environmental and Social Report 2005
8
■ Total assets and shareholders’ equity (consolidated)
■ Principle financial performance indicators (consolidated)
Total assets, shareholders’ equity (billions of yen)
Principle financial performance indicators (%)
Percentage of
shareholders’ equity (%)
2,500
2,385.0
60
8
7.9
2,150.2
2,000
2,003.6
1,966.9
2,004.8
47.1
47.1
45.0
1,500
943.5
1,000
50
926.8
902.1
43.9
943.5
42.1
0
40
1,004.3
30
500
20
2000
Total assets
2001
2002
Shareholders’ equity
2003
2004
6.6
6
0
(fiscal year)
Percentage of
shareholders’ equity
4.2
4
3.6
3.4
2.9
2.0
2
1.2
1.6
0.6
0
2000
2001
ROE (return on equity)
2002
■ Capital investment (consolidated)
■ R&D expenditures (consolidated)
Capital investment (billions of yen)
R&D expenditures (billions of yen)
248.1
250
243.3
2003
ROA (return on asset)
2004
(fiscal year)
Ratio to net sales (%)
200
12
175.5
162.9
200
150
170.2
162.3
147.4
150
149.7
7.4
144.7
152.1
8.0
9
7.6
7.2
100
6.9
6
100
50
50
0
2000
2001
2002
2003
Capital investment
2004
(fiscal year)
0
3
2000
R&D expenditures
2001
2002
2003
Ratio to net sales
2004
0
(fiscal year)
Increasing Corporate Value by Strengthening Sharp’s One-of-a-Kind Strategy
As for the outlook for fiscal 2005, while the Japanese economy is
expected to maintain moderate recovery, some uncertainties are to
be seen, such as increasing raw material prices, including crude oil
prices, which will depress corporate profits, and decreasing exports
due to a deceleration of the global economy.
In an effort to achieve further growth, the Sharp Group is
strengthening its “one-of-a-kind” strategy, as it works to improve
profitability and get the maximum value out of the company.
In the Consumer/Information Products business, Sharp will work to
further improve the competitiveness of LCD color TVs in
anticipation of the full-scale arrival of the digital high-definition
TV era. This is to be accomplished through realizing higherresolution pictures and more advanced features of LCD color TVs.
Innovation in manufacturing technologies as well as thorough cost
reduction will also be implemented for this purpose. “One-of-akind” products in other business areas will also be upgraded,
including Sharp’s unique environment- and health-conscious home
appliances. In the Electronic Components business, Sharp will
9
Sharp Environmental and Social Report 2005
further expand its LCD business by making the fullest use of
high-efficient production systems and increased production
capacity at the Kameyama Plant. In photovoltaic power systems,
Sharp will work to improve competitiveness through increasing
production capacity, improving the conversion efficiency and
slashing costs.
In addition to these efforts, Sharp will work to achieve further
growth by aggressively deploying measures such as constructing a
global business framework tailored to the characteristics of each
region of the world, implementing technological and production
innovation to support the engineering of new products, and
promoting lower costs of operation.
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Financial results
SPECIAL FEATURE Using One-of-a-Kind Technologies to
Become an Environmentally Advanced
Company
Offering Health- and Environment-Conscious Lifestyles
In line with its motto “Sincerity and Creativity,” Sharp has,
since its founding, contributed to society by swiftly
creating “goods the world has never before seen” and
“products that will be in demand in the next era.”
Today, protecting the global environment has become an
important issue shared by all humankind, and awareness
with respect to the environment and to health continues
to increase. In this light, Sharp has set a medium-term
goal of becoming an environmentally advanced
company, focused on making products that contribute to
environmental protection and to healthy living.
The section that follows highlights three examples of
Sharpʼs efforts in these areas, and also feature dialogs
between some of its stakeholders.
Special Feature 1
The Challenge of Broadening
the Use of Solar Energy
11
Special Feature 2
The Next Phase of Sharpʼs LCD Business
17
Special Feature 3
The Environment, Health and Safety—
“One-of-a-Kind” Products in the
Years to Come
23
Sharp Environmental and Social Report 2005
10
Special Feature 1
The Challenge of Broadening the
Use of Solar Energy
Photovoltaic power facility in Sonnen, Bavaria, Germany
11
Sharp Environmental and Social Report 2005
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Vision
Sharp Aims to Become a “Zero Global Warming Impact Company” by 2010
Among global environmental issues, global warming is a
particularly serious problem. The Kyoto Protocol went
into effect on February 16, 2005, and it mandates that the
advanced nations as a group reduce the average amount
of greenhouse gas emissions by 5.2% over the first
five-year period from 2008 to 2012 (compared to the base
year of 1990). Japan has promised a reduction of 6%.
What can we do to prevent global warming? As one
response, Sharp set forth a corporate vision of becoming
a “Zero Global Warming Impact Company by 2010.”
Accordingly, Sharp will limit to the greatest extent
possible the amount of the greenhouse gas emissions
from its business activities around the world, while at the
same time, significantly reducing those emissions with
the energy-creating effects of solar cells and the energysaving effects of new products. The idea is to tip the
balance so that the amount of greenhouse gas emissions
cut will exceed the amount emitted by fiscal 2010.
Greenhouse gas emissions resulting from Sharp business
activities in fiscal 2004 were the equivalent of approximately 1.51 million t-CO2. Plans call for production to
expand each year, centered on energy-creating and
energy-saving products, and thus, in the future, emissions
are expected to increase. Accordingly, Sharp will continue
to control the increase of greenhouse gas emissions
resulting from expanded production by taking measures
to reduce greenhouse gases company wide.
At the same time, the amount of electrical power
generated by the total amount of solar cells produced by
Sharp over the 20 years up to 2003 is projected to be
approximately 542 GWh*1 in fiscal 2004. This is equivalent
to a reduction in greenhouse gas emissions of approximately 240,000 t-CO2*2.
Sharp has been expanding production of solar cells over
the years and has been the world’s largest producer in
terms of volume for the past five years since 2000. In the
future, production will have to increase significantly to
achieve Sharp’s corporate vision of becoming a zero
global warming impact company by 2010. By developing
proprietary technologies, Sharp will push for even higher
performance and lower prices, as well as focusing on
developing new products that will lead to new applications. Sharp will take up the challenge of expanding the
use of photovoltaic power generation with an eye toward
achieving its vision.
(See page 32 for details on Sharp’s corporate vision.)
*1 Sharp’s total production over the 20 years from 1984 to 2003. This figure was
calculated by Sharp based on data from the Optoelectronic Industry and
Technology Development Association for 1984 to 1988 and from PV News
from 1989.
*2 Calculated using a CO2 emission unit of 0.436 kg/kWh at the receiving end
(fiscal 2003), announced by the Federation of Electric Power Companies of
Japan.
■ Sharpʼs solar cell production volume and
world market share (2004)
Sharp
27.1%
324.0MW
Others
50.6%
Worldwide
1,194.7
MW
Company A
8.8%
Company B
7.2%
Company C
6.3%
Source: PV News (April 2005 issue)
■ Sharpʼs solar cell production volume (2000 to 2004)
Production volume (MW)
350
324.0
300
250
197.9
200
150
123.1
100
75.0
50
0
50.4
2000
2001
2002
2003
2004 (year)
Source: PV News (April 2005 issue)
Sharp Honored at Global Environment Awards in
Japan
Sharp won the Economy, Trade and Industry Ministerʼs Prize at
the 14th Global Environment Awards*, making this the second
time for Sharp to be honored, following last yearʼs Education,
Culture, Sports, Science and Technology Ministerʼs Prize.
The company was recognized for being the worldʼs top volume
manufacturer of solar cells for five consecutive years and
contributing to the spread of solar power, which is attracting
attention around the world as a new source of energy. The prize
also highly rates the fact Sharp is making steady progress in
environmental sustainability management.
* A commendation system established in 1992 by the Japan Industrial
Journal with special cooperation from the WWF (Worldwide Fund for
Nature) Japan toward the harmonious coexistence of industry growth and
the global environment. The awards are for businesses, municipalities and
other organizations that have enthusiastically promoted environmental
activities. The awards also recognize technological developments that
reduce the burden on the environment.
Sharp Environmental and Social Report 2005
12
Special Feature 1
The Challenge of Broadening the Use of Solar Energy
Yesterday & Today
A Broad Range of Applications—from Outer Space to Residential and Industrial
Sharp launched development of solar cells in 1959, and
swiftly achieved success in mass production in 1963. In
the beginning, the majority of applications were ones in
which solar cells were used under extreme climatic
conditions, such as on space satellites or in lighthouses
with no possibility of supplying electricity from power
generating plants. Sharp built up a store of technologies
gained through such experiences, and today, has arrived
at the point where it has a wide range of technologies to
make solar cells tailored to specific applications from
diverse materials, such as silicon (single-crystal, polycrystalline and thin-film) and compounds. Sharp also has the
technologies necessary to build photovoltaic power
systems, including modularization, plus the development
and production of power conditioners*.
made a major contribution to their popularization. This is
thanks to Sharp exercising its ingenuity and developing a
diverse range of products to enable an efficient and
aesthetic fit with the roofs of Japanese homes, which use
a wide variety of materials and have a diverse range of
styles and configurations.
Also, to maximize the capabilities of photovoltaic power
systems, full consideration must be given to the amount
of insolation and the angle of installation. Sharp has
focused on providing the most effective systems tailored
to the service conditions of users.
In this way, Sharp solar cells have come to be used in
diverse applications throughout the world and beyond—
from outer space to public facilities, homes and industrial
applications.
Outside of Japan, the range of applications and service
conditions is broad. For example, in Europe, industrial
uses such as photovoltaic power plants account for
approximately 70% of all applications. And developing
countries are burdened with areas that have no access to
grid power and need self-sustaining power generating
systems. Sharp has accumulated the technologies and
know-how to tailor systems matching these applications
as much as possible.
* Power conditioner: A device to control operation of the entire photovoltaic
power system by converting the DC power generated by the photovoltaic
modules to AC power that can be used in the house.
In Japan, approximately 90% of photovoltaic power
systems are destined for residential use, and Sharp has
❶ World’s first docking satellites, Orihime and Hikoboshi. Sharp is Japan’s only solar cell manufacturer certified by the Japan Aerospace Exploration Agency (JAXA).
Approximately 150 space satellites have been installed with Sharp solar cells as of February 2005. Photo courtesy of JAXA
❷ Even in lighthouses exposed to severe conditions, Sharp solar cells deliver stellar performance. They are in use in approximately 1,750 locations as of April 2005.
❸ Decentralized photovoltaic power system, Noyon Village, Mongolia ❹ De Nederlandsche Bank (Central Bank of the Netherlands), Amsterdam, The Netherlands
❶
❷
❸
13
Sharp Environmental and Social Report 2005
❹
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Tomorrow
Promoting Widespread Use Through Further Reductions in Production Costs,
Application Development, and by Proposing Energy Solutions
To accelerate the use of solar power in the future, Sharp
will focus its efforts in the following three areas.
The first is to lower prices even further. To achieve this, it
is essential to push more effective use of materials as well
as innovations in production processes in order to reduce
fabrication costs. Technological development that
increases power generating efficiency will also lead to
cost reductions. At present, Sharp’s single-crystal modules
have achieved the world’s highest module conversion
efficiency*1 of 17.4%, and the company is working to raise
that percentage still more.
The second is to increase applications. In fiscal 2004,
Sharp introduced “Lumiwall” illuminating solar panels
that integrate LEDs (light-emitting diodes) with the solar
cells on the surface of the module. Sharp also commercialized solar-powered streetlights that can be installed as
stand-alone units without a connection to the power grid.
Sharp continues to work on application development
based on flexible, innovative new concepts.
The third is to conduct R&D on next-generation solar cells.
One example is thin-film silicon solar cells that are a scant
two micrometers (microns)*2 thick. The amount of silicon
used is significantly less than conventional crystalline
silicon solar cells, and thus, resource utilization is lower
and costs can be reduced. There is also the advantage
that the modularization process can be simplified
because the cells can be fabricated over large surface
areas. Sharp is also moving ahead with R&D on
compound flexible solar cells that can bend and have a
conversion efficiency above 28%. While moving ahead
with these developments, Sharp is also proceeding with
research on solar cells intended to be integrated and used
with new energy sources such as fuel cells. In the future,
Sharp remains committed to being able to offer total
energy solutions.
*1 World’s highest module conversion for mass-produced terrestrial-use
modules, as of March 18, 2005. Refers to Sharp’s NT-167AK. Conversion
efficiency is the percentage of energy from the light of the sun that is
converted into electrical energy, and is calculated using the formula:
Module nominal maximum power x 100 (W)
Module surface area (m2) x 1,000 W/m2
*2 1 micrometer (micron) (µm) = 0.001 mm
❺ Bruchwegstadion football stadium, Mainz, Germany ❻ “Advance 21 Kifune” condominium
complex, Yamaguchi Prefecture, Japan ❼ Gose water purification plant, Nara Prefecture, Japan.
Installed with a photovoltaic power system with a max. nominal power output of 790kW.
❽ Compound flexible solar cells. Because they can bend, they will open the door to applications never
before imagined, such as a transportable power source mounted on vehicles or clothing.
❺
❻
❽
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Solar power generation systems
■ Decentralized solar power project in the
village of Noyon in Mongolia
❾
■ Photovoltaic (PV) module conversion
efficiency
(%)
20
17.4
15.8
13.4
13.4
❼
Polycrystalline silicon
PV modules
10
5.8
Single-crystal
silicon PV modules
0
1963
1996
2003
2005 (year)
❾ Illuminating solar panels (product name: Lumiwall) and conceptual sketch of usage.
During the day, these thin-film see-through solar panels generate electricity from
sunlight while allowing in natural daylight, and at night, the embedded LEDs serve as a
source of illumination.
Sharp Environmental and Social Report 2005
14
Special Feature 1
The Challenge of Broadening the Use of Solar Energy
Tomorrow
In Schools, Local Communities and Internationally—
Sharp Conveys the Importance of Energy
schools 13 times, with the participation of approximately
800 children and students. In the future, Sharp also has
plans to sponsor extension courses and seminars on
photovoltaic power generation targeting the general
public.
In February 2004, an inquiry came from a teacher in a
Japanese primary school to which Sharp had delivered a
photovoltaic power system: “The children have started to
fritter away electricity, saying it’s OK to do so because the
electricity is being generated on the roof. How would you
advise that I teach them?” Taking this as an opportunity,
Sharp developed the Solar Academy in Japan.
In 2003, Sharp installed a photovoltaic power system
under contract from Japan’s NEDO (New Energy and
Industrial Technology Development Organization) in
Noyon, a village in Mongolia where electricity had been
available for only a few hours a day. Sharp conveyed to
the villagers the company’s wish that those who have
suffered from a lack of electrical power tell the world
about the importance of using energy wisely. Incidentally,
Sharp personnel pay periodic visits to the village to teach
people about the operation of the system and to perform
system checks. Plus, Sharp also invites technicians from
the village to come to Japan for further education.
Sharp believes that it bears a responsibility on the one
hand to promote the widespread use of clean-energy
photovoltaic power systems, and on the other, to
communicate the importance of not squandering energy,
even though solar power is considered energy with little
environmental impact. In this case, introducing photovoltaic power generation unfortunately led to the habit of
wasting energy.
“We adults have polluted the Earth’s environment to
enjoy a lifestyle of convenience. To clean up our Earth one
step at a time, we need everyone to work together to
protect the Earth.” The instructors of the Solar Academy
use this kind of language in making presentations in
schools around the country on environmental problems
and photovoltaic power generation. Since starting in
October 2004, through March 2005, they have given
presentations in primary, junior high and senior high
Sharp would especially like the people who are enjoying
the benefits of clean energy brought by photovoltaic
power systems to understand the importance of energy
and the global environment. And Sharp would like to
expand this concept to the whole world and continue to
achieve more.
❶
Presentation on the environment and
photovoltaic power generation
❶ Nara Municipal Tsubai Primary School,
Japan
❷ Tsubai Primary School’s photovoltaic
power system
❸ Environmental education classes were also
held at primary schools in Mongolia
❹ Tateyama Renewable Energy School, Japan
❸
❹
❷
“We think saving electricity
is important for both the
home and our planet Earth.”
“Solar power
should keep on spreading.
Comments
We must use electricity wisely.”
from children
at Nara Municipal
Tsubai Primary School
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Dialogs with Stakeholders
“Even higher efficiency at lower cost.
Everyone wants the same thing in
photovoltaic power equipment.”
“Through the construction of
photovoltaic power systems, we want
the whole world to feel the immense
power of the sun.”
Mr. Yoshihiro Kitagawa, Associate Director
Service Division, Nara Prefectural Waterworks Bureau, Japan
Introduced a photovoltaic power system at the Gose water
purification plant
Mr. Hidetaka Muneyoshi, General Manager
PV Systems Design Center
Solar Systems Group, Sharp Corporation
Served as liaison with Nara Prefecture at the time of installation
In Nara Prefecture, we work in line with the motto “Stop Global
Warming.” As one part of this effort, we installed a photovoltaic
power system for the Gose water purification plant, and it’s been in
operation since April of this year. The installation area is 6,272 m2,
about the same size as a soccer field. Using a total of 4,740
photovoltaic modules, this is the largest such installation in Japan.
Even though the construction schedule was tight, deliveries came in
right on time. In the future, I wish Sharp would develop photovoltaic
power equipment that offers even greater efficiency at even lower
cost. But isn’t this what everyone asks for?
It was an extremely tight construction schedule, but we were able
to complete the project on time. The power generating display
shows that approximately 200 kW of power is being generated,
even on cloudy days. We would like not only the people working
in the water purification plant, but also people coming through
on tours, to be impressed by the immense power of the sun. We
think that this feeling is extremely important in protecting the
environment. To spread this impression to the whole world, we
would like to keep on building photovoltaic power systems one
by one while meeting the needs of all our clients.
“We’d like to see more models
in Sharp’s line-up such
as ‘roof-integrated’ products.”
“Our mission is to provide ‘satisfaction’
and ‘peace of mind’ to customers
with the dealers based in our region.”
Mr. Kazuyuki Sakaue, President
Engineer Sakaue Co., Takatsuki, Osaka Prefecture, Japan
Sharp Amenity Systems Corporation dealer
Mr. Akira Yabuki
Assistant Manager, Kinki Sales Division
Sharp Amenity Systems Corporation
Responsible for dealer support
For photovoltaic power systems to yield sufficient electricity, the
installation setting is important. Sharp products do a good job of
balancing conversion efficiency and price, and since they can be
installed on any roof configuration, we can present our customers
with a wide range of solutions. So far, we’ve designed and installed
systems on over 200 homes, and all our customers have been
satisfied. Recently, an increasing number of customers want
systems in which the photovoltaic panels are integrated with the
roof, and we would like it if Sharp had more “roof-integrated”
products in its line-up.
We make sales by signing dealer agreements with companies
based in the region and are also adopting a certification system
for installation workmanship so that customers can feel
confident in installing Sharp systems.
When Mr. Sakaue became a Sharp dealer, he first installed a
photovoltaic power system on his own house. He was able to
experience “creating energy” for himself. Working together with
such dealers, we are creating an environment in which
customers can have systems installed with peace of mind, and
we are also continuing to put energy into developing products
that satisfy customers.
“Don’t just sell products.
Please convey the importance of
protecting the environment.”
“We take our responsibility
as a manufacturer seriously
and decided to start new activities.”
Mr. Yoshiharu Miyaji
Teacher at Nara Municipal Tsubai Primary School, Japan
Gave Sharp the idea of starting the Solar Academy
Mr. Fumihiko Hoshika
Manager
Solar Systems Group, Sharp Corporation
In charge of Solar Academy environmental classes at
Tsubai Primary School
Our school was the first elementary school in the city of Nara to
have a photovoltaic power system installed. However, not only did
the children not understand the significance, but our teachers
weren’t able to explain it. So I phoned the people at Sharp. “We
don’t want you to only beat the drum for products using ads. We
also want you to properly inform the children about
environmental problems and the significance of solar cells.”
We took the remarks of Mr. Miyaji to heart: “Is the only thing you
manufacturers do is make things?” We realized holding special
classes was a role which only Sharp could play. We took it as an
opportunity and the Solar Academy was born. Today, this
program is not limited to educational support, but is expanding
to include courses for municipalities and community-based
organizations.
Drawing on this idea, Sharp was able to offer a special class. These
children will be in charge of the global society of the future, and
this class got the ball rolling for them to think about
environmental problems.
From now on, Sharp will not only be making solar cells, but is
committed to communicating the significance of solar power
and the importance of protecting the environment.
Sharp Environmental and Social Report 2005
16
Special Feature 2
The Next Phase of
Sharp’s LCD Business
17
Sharp Environmental and Social Report 2005
International CES 2005 (Las Vegas, US)
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Vision
Increasing the Reliability and Enhancing the Performance of LCDs Now
Increasingly Essential in Every Area as “Windows” for Information
Worldwide sales of TVs easily surpass the 100 million mark
annually. This enormous market has recently been undergoing
a rapid shift from CRT*1 TVs to flat-panel TVs. And in LCD*2 TVs
which dominate the flat-panel TV market, the brand that has
acquired over 30% of the worldwide market share*3 is Sharp’s
AQUOS.
AQUOS is an energy-efficient, space- and resource-saving
product with lower power consumption, as well as being
thinner and lighter than CRT TVs of the same screen size. Sharp
has also boosted environmental performance in every way,
with a design that enhances recyclability, as well as adopting
environmentally conscious components and materials.
reliability, bringing about an evolution in LCDs and LCD
application products.
In the future, amidst greater information infrastructure
development and increasing computerization in society,
Sharp LCDs will play an even more important role as
“information windows” that can be opened anytime,
anywhere.
*1 CRT: cathode ray tube
*2 LCD: liquid crystal display
*3 Sharp research (fiscal 2004, per-unit basis)
In the coming era, ensuring high product quality and high
reliability is unquestionable; however, we must also broaden
the use of products that have less environmental impact. Sharp
feels that this is a responsibility a manufacturer has to society.
LCDs, which are thin, light and offer low power consumption,
are widely used not only in TVs, but also in mobile products
such as mobile phones. In addition to being used in LCD TVs,
notebook PCs, monitors and mobile phones within the
company, Sharp LCD panels are supplied to companies that
manufacture a wide variety of electronic devices and
equipment. By responding to demands from inside the
company and also from its corporate customers, Sharp is
expanding applications, boosting performance and increasing
Sharpʼs LCD displays both character and
video clearly. Fields in which LCDs are
used as “information windows” will
continue to expand in the future.
■ Worldwide CRT TV and LCD TV demand estimates
■ Progress in achieving total AQUOS
production of 5 million units
(Millions of units)
150
(Millions of units)
5
Time required
for each million
5 million units (December 2004) units
3 months
4
4 million units (September 2004)
4 months
100
3 million units (May 2004)
3
7 months
2
2 million units (October 2003)
50
10 months
1
0
2003
CRT TV
2004
2005
2006
2007
2008
LCD TV (larger than 10 inches)
2009
(year)
1 million units (December 2002)
Start of
production
(December 2000)
0
2000
2001
2 years
2002
2003
2004
(year)
Source: JEITA “World Demand Estimate for Main Audio-Video Products” (February 2005)
Sharp Environmental and Social Report 2005
18
Special Feature 2
The Next Phase of Sharp’s LCD Business
Yesterday & Today
LCDs Engender New Application Products, and in Turn,
Application Products Bring About Evolution in LCDs
Sharp began research on liquid crystals in 1969.
Researchers throughout the world recognized their
superior qualities, but abandoned attempts to turn them
into a commercially viable product because of the
difficulty of selecting and mixing materials. Engineers at
Sharp, who were engaged in building desktop electronic
calculators that were more compact with lower power
consumption, focused their attention on these liquid
crystals and became intensely involved in research.
Finally, in 1973, they succeeded in developing a practical
application of liquid crystals as displays for electronic
calculators. This was a world first. LCD electronic
calculators*1 which rapidly became more compact and
which could be used for long periods at low power,
turned the concept of “electronic calculator” completely
upside-down. In addition, LCDs, which offer features such
as thin profile, light weight and low power consumption,
became key devices that engendered a long line of new
application products.
lightweight, low-power-consumption LCD TVs into a
market dominated by CRT-based TVs, Sharp would be
able to offer an exciting new lifestyle to people.
In 1991, Sharp developed the world’s first wall-mounted
TV. It was equipped with an 8.6-inch TFT color LCD panel,
the industry’s largest at the time, but the screen size was
still small, and many problems needed solutions. As we
entered a new century, in 2001, Sharp introduced the
AQUOS series. Since then, Sharp has continued to
produce ever larger screen sizes while improving display
performance, including viewing angle, contrast and
response speed.
In December 2004, the total number of AQUOS sets
produced climbed to 5 million units. By offering a line-up
ranging from 13V-inch to 45V-inch sizes*2, AQUOS models
find use throughout the world. The dream of a
“wall-mounted TV” has blossomed into a reality even
more beautiful and grander than ever imagined. Well into
the future, Sharp will continue to foster the evolution of
LCDs, reaching for new dreams far beyond the
wall-mounted TV.
From numeric and alphanumeric read-out to image
display. From monochrome to color. From still image to
full-motion video. Toward bigger screen size. Toward
thinner and lighter, with even lower power consumption.
Sharp fostered the evolution of LCDs while working to
expand applications. In such an environment, the one
dream that Sharp engineers continued to pursue for
many long years was the development of a wall-mounted
TV. They thought that, by introducing thin-profile,
*1 The world’s first practical LCD electronic calculator: Compared to the
first desktop electronic calculators which used fluorescent indicator
tubes as their display element, Sharp’s model was 1/12th thinner,
1/125th lighter, had 1/250th the parts, 1/20th the price and used
1/9000th the power. It could be used for 100 hours on one AA battery.
*2 “V-inch” (such as 13V-inch) is a measure of the true size of the flat TV
screen. It is a standard derived from the actual length of the actual
viewing area.
Sharp’s “spiral strategy” of products and devices exploits the synergy engendered by the development of its key devices. The same
synergy encourages the developing of still more devices, and that in turn stimulates the upward spiral of the development process. The
basic concept is that strong key devices engender new products with outstanding features (“one-of-a-kind” products), and the need of
devices for new products brings about the further evolution of strong devices.
LCD Technologies
Application Products
New-mode display
LCD monitors, large-screen LCD TVs
TFT (new mode) color
LCD (Advanced Super View)
2004∼
2000∼
Reflective/transflective display
TFT-STN reflective/
transflective LCD
1997∼
TFT-TN color display
1987∼
TFT (TN) color LCD
Graphics display
1983∼
Static display
TN LCD
19
Notebook PCs, PDAs, camcorders,
digital still cameras,
pocket TVs,
car navigation systems
Word processors
STN LCD
Segment display
1999
Color mobile phones,
games
DSM LCD
Sharp Environmental and Social Report 2005
1975
1973
Games, watches
LCD electronic calculators
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Tomorrow
Pursuing Still Better Environmental
Performance While Meeting the
Demand for Larger Screens
In today’s television market, as consumers switch to
flat-panel TVs, demand is also growing for larger screen
sizes. To respond to such market needs, in October of
2004, Sharp announced a prototype 65V-inch LCD TV, the
world’s largest*, and announced plans to develop
large-screen LCD TVs in sizes exceeding 50V inches.
As screen sizes become larger, power consumption
increases. To fulfill its social responsibility as a
manufacturer to reduce environmental impact while
satisfying market demand for larger TV screens, Sharp is
working toward even greater reductions in power
consumption in LCD TVs.
What accounts for most of the power consumed in LCD
TVs is not the LCD panel itself, but the backlight mounted
on the rear of the panel. Sharp engineers are working on
the development of technologies to improve the
luminous efficiency of the backlight and boost the
transmissivity of the LCD panel.
While pursuing even greater energy efficiency, a
characteristic feature of LCD TVs, Sharp’s LCD TVs also
give thorough consideration to the materials they use.
The AQUOS minimizes harmful substances in its parts and
materials, and uses recycled materials as much as
possible. For example, the cabinet uses no halogen-based
flame retardants. The sheet steel in the frame and
fasteners (nuts and bolts) has no hexavalent chromium
plating. The power cords and the covering material of the
inner cables eliminate the use of halogens. And, the stand
uses recycled plastic.
One Example: the “Sheet”
Computer—Advancing the
Development of LCDs Useable
Anywhere, Anytime, by Anyone
As the building of infrastructure and development of
technologies related to communications and
broadcasting continues to advance, the “ubiquitous*1
network society” that enables access to information from
any place in the world is becoming a reality. New
products and services are coming into widespread use,
such as 3rd generation mobile phones and terrestrial
digital broadcasting, and LCDs are increasingly needed in
a wide variety of settings.
As a leader in the LCD field, Sharp is working to bring
about the further evolution of LCD technologies to offer
new application products and lifestyles in the future. One
such technology which Sharp has been focusing on for
the future is System LCDs*2. This technology provides a
further boost in the resolution of LCDs, making it
possible to display more information in greater detail no
matter how small the screen.
Sharp is also looking toward ultra-thin “sheet” computers
that integrate all the components necessary for a
computer on the same glass substrate, including not only
the display, but also the CPU, sensors, audio circuitry and
so on.
*1 “Ubiquitous” comes from the Latin word, ubique, meaning “being
everywhere at the same time; omnipresent.” The concept originated with
Dr. Mark D. Weiser, a chief scientist of Xerox’s Palo Alto Research Center
(PARC). He proposed an environment in which users would be able to enjoy
the power of computers having similar capabilities wherever they went.
*2 System LCD: A “system-on-panel”
technology developed jointly with
Semiconductor Energy Laboratory,
Co., Ltd. The use of CG (continuous
grain) silicon enables incredibly
higher screen resolution compared
to conventional LCDs. System
LCDs, which integrate peripheral
circuitry and other elements onto
the glass substrate of the LCD
panel, have the potential to bring
about revolutionary changes in
mobile devices.
As the ideal TV for this century of the environment, Sharp
will continue reducing the environmental impact of its
LCD TVs even further.
* As of May 2005
■ The environmentally conscious AQUOS (LC-37AD5)
②
①
③
⑤
④
⑥
① Stand using 20% recycled material
② Non-halogen cabinet
⑦
65V-inch LCD TV announced in October 2004. This success ③ Lead-free solder circuit board
greatly expanded potential screen sizes for LCD TVs,
④ Hexavalent chromium-free sheet steel
thought to have their upper limit in the 45V-inch class,
⑤ Halogen-free power cords and inner cables
thus proving that LCD technology is still evolving.
⑥ Hexavalent chromium-free fasteners (nuts and bolts)
Note: The LC-37AD5 is for the Japanese market.
⑦ Speaker grill using easy-to-recycle metal
Sharp Environmental and Social Report 2005
20
Special Feature 2
The Next Phase of Sharp’s LCD Business
Tomorrow
Aiming for Reductions in Cost and Environmental Impacts through
Further Innovations in Production Technology
Sharp considers that its mission and responsibility are to
bring LCD TVs, which deliver superb environmental
performance, into widespread use.
From the standpoint of boosting cost competitiveness,
one choice as a manufacturer is to produce a product
overseas. It depends on the product, of course, but for
manufacturing on the leading edge of technology, Sharp
regards Japan to be the optimal location for production.
Japan is home to an extensive base of sophisticated and
wide-ranging ancillary industries, such as manufacturers
of LCD fabrication equipment and peripheral
components. Accordingly, in January 2004 Sharp
launched its Kameyama Plant, a Super Green Factory*1,
that reduces environmental impacts associated with
manufacturing to the absolute minimum and gives
careful consideration to coexistence with nature and the
local community. This is the world’s first integrated LCD
TV production facility—from manufacturing the LCD
panels to final assembly of the finished TVs. Integrated
production enables the fusion of technologies and
reductions in waste and loss, thus holding down the cost
of leading-edge products.
In the future, Sharp plans to push ahead with further
innovations in production technology, and in October
2006 the company will start operations of the Kameyama
Plant No. 2, which will adopt the world’s first*2
8th-generation glass substrate and is ideal for
manufacturing 40V- and 50V-inch class LCDs. This second
plant will further reduce environmental impacts, as well
as enable substantially reduced costs as a result of
working with suppliers to develop novel materials,
beginning at the design stage. In addition, wide-ranging,
top-to-bottom production innovations here will double
the productivity of investment (in 45V-inch panel
equivalents) compared to Plant No. 1.
*1 Certification based on internal standards. For details,
see pages 45 and 46.
*2 As of May 2005
Kameyama Plant Wins Top Honor at
1st Nikkei Monozukuri Awards* in Japan
Sharpʼs Kameyama Plant received the grand prize at the 2004
1st Nikkei Monozukuri Awards, sponsored by Nihon Keizai
Shimbun, Inc. This plant was highly rated for its superior
manufacturing processes, including the fact that it implemented
the worldʼs first production of LCD panels using 6th-generation
glass substrates. It also established an integrated production
system that handles everything from panel manufacture to final
assembly and is known for its environmental conservation
measures. The Kameyama Plant also won the top prize in the
2004 Japan Sustainable Management Awards (administered by
Mie Prefecture). For details, please refer to page 46.
z
* Nikkei Monozukuri Awards serve to recognize factories, businesses
and systems that adopt highly advanced technologies or unique
methods of manufacturing.
Sharp’s Kameyama Plant, a state-of-the-art LCD production facility, is a Super Green Factory that keeps environmental impacts to an absolute minimum with its
cogeneration system, 100% recycling of industrial wastewater and zero industrial waste discharge. ❶ The front wall above Plant No. 1’s main entrance has 600
photovoltaic modules, designed to resemble an AQUOS. ❷ This water purification system recycles 100% of the water used in production.
❸ Bird’s-eye view of the Kameyama Plant site. In the foreground is Plant No. 2 slated to begin operations in October 2006.
❶
❸
Plant No. 1
❷
21
Sharp Environmental and Social Report 2005
Plant No. 2
(conceptual sketch)
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Dialogs with Stakeholders
“From television to medical information
terminals—to catch up with their evolution,
it’s crucial that images are in high precision.”
“We offer LCD multimedia monitors that
display beautiful images.”
Mr. Eiji Okiura
Sales Manager
Company Limited Lease Tokyo, Japan
Adopted AQUOS as lease televisions for hospitals
Mr. Koichi Yoshida, Manager
East Japan Sales Division II
Domestic Sales and Marketing Group
Sharp Corporation
In charge of sales of lease televisions for hospitals
The space-efficient design of the AQUOS caught our eyes ever since
it was first released. We contacted Sharp and asked them to develop
a model specifically for hospital use. Compared with CRT TVs, using
an AQUOS in a hospital room has enabled users to use a table more
effectively and watch better images from any angle, and therefore
patients have been greatly satisfied.
Today, more and more medical institutions are adding multimedia
systems that convey medical information as part of their equipment.
High precision is demanded for the monitors, as both TV and
information terminals, and we have high expectations for Sharp's
LCD color monitors.
Lease Tokyo advised us on making the functions of LCD TVs
simpler to facilitate its operations and points for their safe
installation, and the company cooperated with our product
division in developing models for hospitals. We are very
pleased to hear that our LCD TVs have been received
favorably by patients for easy operation, wide viewing angles
of 170 degrees, and excellent picture quality.
Sharp has also developed the “Crisia” line of LCD multimedia
monitors, which are already being used as information
terminals that convey information in hospitals. In the future,
by fully making use of the features of LCD, we want to
contribute to medical scenes in a wider variety of fields.
“The retail store is responsible for informing
the manufacturer of conditions of products
used by customers.”
“If there is a problem, thoroughly
investigate it—he is an excellent
teacher for Sharp.”
Mr. Toshio Kumita, President
Friend Shop Kumita Denki, Kitagata, Gifu Prefecture, Japan
Sold more than 200 AQUOS in an area of 6,000 households
Mr. Masanori Ito, Gifu Branch Manager
Sharp Electronics Marketing Corporation
In charge of sales and support to local stores
Since autumn 2003 when we celebrated our 28th year in business,
we have taken all CRT TVs off our store shelves and replaced them
with AQUOS. Being a big fan of this product, when a customer
informed us of being troubled by distorted images, we swiftly
requested Sharp to look into the matter for an early solution.
We, as retail stores, are the front line for delivering products to
customers. We think it is our responsibility to inform the
manufacturer of how products are functioning after being sold.
“Creating a structure for providing
maintenance and service for car navigation
systems—we look forward to Sharp’s
cooperation in handling this new task.”
Mr. Hachiro Yokota, Senior Manager
Command Display Product Development Dept.
Alpine Electronics, Inc., Japan
Jointly developed in-vehicle LCD modules
It was some 15 years ago when our company, which develops and
manufactures car navigation systems, started business with Sharp.
In-vehicle LCD modules require an operating temperature range of
more than 85°C. We judged Sharp’s products could handle such
severe conditions, so we chose the company as our partner for joint
development.
We must pursue not only quality, but also fulfill our responsibilities
as a manufacturer such as by continuously supplying spare parts. We
have great expectations for Sharp as a partner in tackling these
tasks.
The cause of the trouble about which Mr. Kumita contacted
us turned out to be electromagnetic waves emitted from a
nearby electric appliance in the customer’s house. Through
earnest information exchanges with Sharp’s head office and
service center, Mr. Kumita cooperated in our investigation
into the cause. We appreciate his cooperation.
Mr. Kumita, who also serves as a volunteer lecturer for a
science classroom for elementary school students, is making
his store the one that is loved by the local community. Mr.
Kumita is a person who understands Sharp very well and at
the same time, is a very strict teacher for Sharp.
“Reinforcing cooperation to build
a service system.”
Mr. Mitsutoshi Sakamoto, Assistant Manager
Sales & Marketing Dept. II Iwaki
Sales & Marketing Division III
Sales and Marketing Group - Electronic Components and Devices
Sharp Corporation
In charge of technical sales of in-vehicle LCD modules
The time for replacing the parts of in-vehicle LCD modules
that were sold at the initial marketing of the products will
come soon. Because the car navigation system is a new
product field, we must create a mechanism of parts
replacement and repair that has not existed before.
Together with Alpine Electronics, we have improved product
quality and achieved large results through holding
technology exchange meetings. In building a new service
system that includes supplying spare parts, we hope to fulfill
our responsibilities based on our reinforced partnership.
Sharp Environmental and Social Report 2005
22
Special Feature 3
The Environment, Health
and Safety—
“One-of-a-Kind” Products in
the Years to Come
23
Sharp Environmental and Social Report 2005
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Vision
Contributing to Life and Business in the 21st Century by
Developing Innovative New Products that Offer More than
Convenience and Comfort
as possible, making it easy to recycle, helping to maintain
health and safety of use by both the elderly and
children—these factors are demanded in today’s
products.
In the 20th century, a wide range of home appliances
made their debut, enabling the world to pursue
convenience, ease and speed. However, as we entered the
1990s, consumers became aware that convenience
demands a lot of energy and disrupts the environment.
They raised the question: “Convenience is important, but
healthy living is another thing to consider, and isn’t that
more important?”
Recognizing this transformation in awareness, Sharp early
on incorporated “the environment,” “health” and “safety”
into its concept of home appliance product development.
Above all, Sharp is working to develop “one-of-a-kind”
technologies and products that create new values in the
three areas of “air,” “water” and “food,” which form the
basis of life. Sharp wants to contribute to the lifestyles and
business of the 21st century by providing unique, original
technologies and products both to consumers and to its
corporate customers.
Today, problems such as global warming, environmental
pollution, the increase in lifestyle-related diseases and the
rapidly aging society in advanced countries are becoming
more acute. With home appliances as well, consumers are
demanding that such problems be taken into
consideration. Minimizing energy consumption as much
Air
Plasmacluster
Ion Air Conditioner
disinfects the air
Kitchen Waste
Composter processes
organic waste using
biotechnology
Products related to
air, water and food
with “the
environment,”
“health” and “safety”
as keynotes
Water
Food
Water Oven*
cooks using water
Ag+ Ion Washing Machine
coats laundry with silver ions
Hard-Water Ion Dishwasher
cleans using table salt
* Superheated Steam Oven
Sharp Environmental and Social Report 2005
24
Special Feature 3
The Environment, Health and Safety—
“One-of-a-Kind” Products in the Years to Come
A One-of-a-Kind History (Home Appliances)
1961
R-10 Microwave Oven, Japan’s First
Sharp developed Japan’s first microwave
oven, and the following year, took the lead in
launching mass production. First introduced
for commercial use, Sharp began to work hard
toward wider consumer use.
1966
R-600 Turntable Microwave Oven
Sharp developed the world’s first microwave
oven to use a turntable, introducing it as
Japan’s first consumer model. It was a
revolutionary product that built the
foundation for taking the lead in the industry.
1973
SJ-3300X 3-Door Refrigerator with
Vegetable Compartment
The first 3-door refrigerator for home use with
a special vegetable compartment. Responded
to requests from consumers to be able to keep
vegetables fresh as long as possible using a
special vegetable compartment.
1986
RE-102 Toaster/Microwave Oven
The first in the industry to feature a
“microwave warming” function and a “toaster”
function to toast bread.
1988
SJ-38WB/32WB Dual-Swing Door
Refrigerator
Taking a hint from a broach clip, Sharp
developed a refrigerator with the world’s first
right/left swing-opening door. Highly rated for
its ease of use that didn’t change even when
moved to a new location.
1992
ES-BE65 Fully Automatic Washing Machine
with Hole-Less Tub
Sharp released a fully automatic washing
machine with a single, hole-less tub that cuts
water and detergent use by approximately
30% (compared to Sharp’s previous models).
1996
AY-H28FX/H25FX Air Conditioners
An air conditioner equipped with not only
conventional cooling, heating and
dehumidifying functions, but also the
industry’s first humidifying and ventilation
functions, enabling total control over five
air conditioning functions.
2000
FU-L40X Plasmacluster Ion Air Purifier
Sharp released its first product incorporating
Plasmacluster Ions, a proprietary air purifying
technology.
2002
ES-U80D/U70D Ag+ Ion Fully
Automatic Washing Machine
Sharp developed another world-first: an antibacterial
coating function that uses Ag+ (silver) ions. The
product has changed the way people think about
washing machines owing to its ability to suppress the
growth of bacteria on clothing and eliminate odors
associated with sweat and hanging clothes to dry
indoors.
25
Sharp Environmental and Social Report 2005
Yesterday & Today
Bringing the Legacy of Sharp’s
Founding Spirit to Life in Creating
“One-of-a-Kind” Products
Sharp introduced the first “crystal radio set” produced in
Japan in the 1920s, and Japan’s first “picture-tube
television” after World War II. Sharp subsequently
developed Japan’s first “electronic oven that cooks with
microwaves” and the world’s first “all transistor-diode
electronic calculator.”
“Make products that others will imitate!” was the favorite
phrase of Sharp’s founder, Tokuji Hayakawa. These words
embody his deeply felt desire to contribute to the
development of society and improvement of people’s
lives by making products so good, that competitors
would want to copy them, thereby fostering
technological competition within the industry. Through
these words, Sharp has been fulfilling its great social
responsibility of producing a ripple effect in the industry
and indeed, in the whole world, by building new markets
through the creation of innovative new products.
Entering the 21st century, Sharp has developed a series of
original new technologies and products, such as
Plasmacluster Ion technology that doesn’t merely filter
indrawn air, but disinfects the entire space while releasing
ions, and the “Water Oven*,” a health-conscious cooking
appliance that uses superheated steam instead of a flame
to cook deliciously. In the view of some, the home
appliance market has already matured, but it is Sharp’s
view that by incorporating proprietary technologies and
offering the potential of new lifestyles, new markets can
be built. By bringing Sharp’s founding spirit to life in
“making products others will imitate,” the company aims
to take advantage of developing a wealth of proprietary
technologies and creating unique “one-of-a-kind”
products.
Another thing is the importance of communicating value.
In particular, Sharp has been explaining to customers the
significance of, and the use for, totally new products so
that benefits are easily understood. For ion-effect
products like Plasmacluster Ion products and the Ag+ ion
washing machine, as well as for the Water Oven, Sharp
has been carrying out joint research with respected
third-party organizations to prove and disseminate
information on the benefits of these products. For the
Water Oven, Sharp has been demonstrating the product
to show consumers how it reduces fat in foods and cooks
delicious meals. Sharp believes that through efforts such
as these, the world can begin to understand the value of
Sharp’s one-of-a-kind products.
* Superheated Steam Oven
Tomorrow
Envisioning the Kitchen of the
21st Century—Protecting the
Environment and Promoting
Health in Daily Life
According to population dynamics studies by Japan’s
Ministry of Health, Labor and Welfare, cancer, heart
disease and cerebral vascular disease account for 60% of
all causes of death. In many cases, these three major
geriatric diseases result from skewed lifestyle habits,
particularly diet, and have recently have been labeled as
“lifestyle-related diseases.”
Sharp’s Water Oven, which became popular immediately
after its introduction in September 2004, is a completely
new type of cooking appliance born out of the concept of
improving dietary habits by changing the method of food
preparation. It brings to a domestic oven the technology
to heat, using not conventional open flame or
microwaves, but hot superheated steam at a temperature
of 300°C. This oven has the ability to reduce excess fat and
salt as well as prevent the oxidation of food to limit the
destruction of vitamin C.
To take full advantage of “roasting with water,” a food
preparation method with which consumers have no
direct experience up to now, Sharp chose 126 recipes
appropriate to this cooking method, and programmed
them into an Auto Menu feature that automatically
determines the time, temperature and optimal amount of
superheated steam for foods. In response to customer
requests for more recipes, Sharp develops new recipes
and makes them available in pamphlets, as well as on the
company’s Web site. Starting with this Water Oven, Sharp
is moving ahead with product development in line with
its theme of the health-conscious, environmentally
friendly “Kitchen of the 21st Century.”
Sharp’s QW series of countertop dishwashers reduces
environmental impact based on a technology that uses
ordinary table salt to clean, thus eliminating the use of
detergents. New models feature an enhanced
water-saving function—a new “spot cleaning” function
that cleans by shifting to one side when only a small load
of plates and utensils is being washed.
Sharp’s Kitchen Waste Composters process organic waste
generated in the home using proprietary biotechnology
and can reduce the volume of waste by 92%* in 24 hours.
Sharp listens to what its customers have to say about
these products, and this feedback is put to use in
developing new models and other new application
products.
Sharp will continue to listen to the requests of its
customers and make use of their comments in an
ongoing effort to develop more one-of-a-kind products
that promote customer satisfaction and offer new lifestyle
possibilities.
* When processing a standard test batch of 700 grams of
organic kitchen waste at a temperature of 20°C.
Water Oven
Superheated Steam
System Mechanism
This health-conscious cooking appliance
cooks food deliciously using superheated
steam obtained by further heating 100°C
steam to a temperature of 300°C. It enables
“low-fat cooking” that drains away excess
fat and oils from meat and fried foods,
“low-salt cooking” that drains away excess
salt from foods such as salted salmon or
mackerel, and “low-oxidation cooking”
that minimizes loss of vitamin C.
Further heated
by the
Superheated
Steam
Generator
(%)
100
674
kcal
88 kcal
reduced
586
kcal
90
Frypan
Water Oven
Superheated
Steam
Steam
Water
Salt
Fat
Heated by the Steam Generator
Health Benefits
Fat reduction
Steak (200 g)
Food is cooked by a
spray of superheated
steam from top and sides
Salt reduction
Salted dried
mackerel (100 g)
(%) 2.4%
100
reduced
Approx.
6 times
less
90
13.7%
reduced
Gas grill
Water Oven
Vitamin C preservation
Squash (75 g)
(%)
93.2%
100
75
50
50.9%
Conventional
oven (RE-MA1)
Approx.
1.8 times
more
Water Oven
Analysis: Japan Food Research Laboratories
Hard-Water Ion Dishwasher
Hard-water ions scour away stubborn
protein food residues
Dissociation/
dissolution
Comparison of cleaning using tap
water versus hard water
A proprietary ion exchange system
Tap water
Hard water
using salt generates hard water
(containing large amounts of
magnesium and calcium ions). This
ion-rich water washes away
stubborn dirt and proteins such as
No food residue Dissociates and
hardened egg residue.
removed at all
dissolves protein
Kitchen Waste Composter
Thanks to the action of a proprietary
Composting Bio Mix and an innovative
agitation system, this product dramatically
reduces the volume of kitchen waste by 92%
in 24 hours. Also suppresses unpleasant
odors while it works.
Sharp Environmental and Social Report 2005
26
Special Feature 3
The Environment, Health and Safety—
“One-of-a-Kind” Products in the Years to Come
Tomorrow
Earning Credibility Based on Scientific
Explanations of Effectiveness and
Benefits, Expanding the Possibilities of
Technology with Sharp Corporate
Clientele
Plasmacluster Ion technology, which Sharp developed in
2000, stops the activity of airborne bacteria by releasing
positive and negative ions into the air. This technology
was commercialized at the stage where its effectiveness
against mold fungi had been verified. However, even after
that, Sharp continued collaborative research efforts with
leading-edge academic research organizations and went
on to demonstrate its effectiveness in eliminating
allergens such as airborne viruses and pollen, as well as
the dead bodies and feces of mites, and also to explain the
mechanism behind their elimination.
By being the first in the home appliance industry to adopt
such an industry-academic collaboration (thus harnessing
the entire process from development to marketing by
working with universities and third-party public institutions to theorize and scientifically verify the efficacy and
benefits of a technology), Sharp was able to boost
customer confidence and push application development
in fields beyond the boundaries of home appliances.
Currently, Sharp is working together with corporate
customers in diverse fields of business, including automobiles and elevators, further broadening the potential of
Plasmacluster Ion technology.
The equipment and environments in which Sharp’s
business partners are embedding Plasmacluster Ion
technology varies widely. By setting up liaisons responsible for working with each partner, Sharp is laying the
groundwork that will enable the company to service and
readily respond to their needs.
Constructively Proposing
“Eco-Conscious Lifestyles” to Customers
and Dealers in Japan
Making environmentally conscious products is a responsibility that must naturally fall on the shoulders of manufacturers. Beyond that, Sharp also feels it has an obligation to
propose “Eco-Conscious Lifestyles” to its dealers and
customers. Since September 2004, Sharp has held a series
of Environment Forums aimed at dealers, focusing on the
importance of global environmental issues and suggesting ways to broaden the use of energy-saving products.
Thus far, over 1,000 stores have participated in these
forums. In the future, Sharp will be tailoring proposals to
the size and business format of dealers. Sharp has also
been promoting a set of Eco Driving (environmentally
conscious driving) suggestions to its dealers, offering
examples on how to improve fuel consumption.
To enable customers to enjoy the best environmental
performance that Sharp products have to offer, the
company has begun to include a section in instruction
manuals on how to use products in an environmentally
conscious way. Ten types of products were targeted,
including LCD TVs, air conditioners, dishwashers, kitchen
waste composters and photovoltaic power systems. In the
future, Sharp plans to further expand the types of target
products, and is committed to working together with all
stakeholders to reduce environmental impact in both
distribution and sales.
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Water Oven (Superheated Steam Oven)
■ Plasmacluster
In 2004, Mechanism Underlying Plasmacluster Ion Technology Revealed
Working in collaboration with Professor Gerhard
Artmann of the Department of Cell Biophysics
and Bioengineering of Aachen University of
Applied Sciences in Germany, Sharp has been
able to shed light on the mechanism by which
Plasmacluster Ions inactivate bacteria. The ions
break down the protein in the cell surface
membrane of the bacteria, thereby
inactivating it. Since the
DNA is not damaged, it is
clear that this technology
is safe and reliable.
Membrane severed;
intracellular material
leaks out
With Plasmacluster Ions
No Plasmacluster Ions present
Plasmacluster Ion
generator
Lavatory fixtures
Educational poster
Car air conditioner/ Car air conditioner/
purifier
purifier
Eco Driving pamphlet and sticker
Car air
conditioner
Bathroom heater/ventilator/dryer
Wide range of
applications
Elevators
Ion duct carrier
system
Hot-water heater/dryer
Gas fan heaters
24-hour ventilation
system
Smoke-control system
Whole house air- Bathroom heater/
conditioning system ventilator/dryer
27
Car Plasmacluster
Ion generator
Sharp Environmental and Social Report 2005
Instruction manual explaining how to use the
product in an environmentally conscious manner
Campaign button worn by
all employees
Using One-of-a-Kind Technologies to Become an
Environmentally Advanced Company
Offering Health- and Environment-Conscious Lifestyles
Dialogs with Stakeholders
“I was delighted that foods tasted
delicious, even with less salt.
It would be great if the cooking
time could be faster.”
Ms. Hiromi Imanishi, Habikino, Osaka Prefecture, Japan
User of Sharp’s Water Oven
To look after my husband’s health, we pay close attention to
food. An acquaintance introduced me to the Water Oven when it
came on the market, and we bought one immediately. Salted
salmon comes out delicious even with less salt, so my husband is
happy. I also use it often to roast sweet potatoes. Even reheated
tempura tastes delicious, as if it was just made. But warming up
rice takes a bit of time, and it would be nice if it could heat a little
faster.
“We would like to see more products with
outstanding environmental performance
and Sharp to provide information that
increases environmental awareness.”
Mr. Yoshiaki Taniyama, Corporate Director and
Sales Division General Manager
Taniyama Musen Co., Ltd.
Working for environmentally conscious sales in Kyoto, Japan
Concern for the environment runs high in our part of the country,
which is where the Kyoto Protocol was adopted. We are constantly
thinking about how our stores can get involved in reducing
greenhouse gases and how we should be selling things.
We are indebted to the people from Sharp for the environmental
training and help in store planning and operation we received
through their Eco-Conscious Lifestyles campaign. We would like to
see even more energy put into making people more aware of the
environment, starting with the development of environmentally
conscious products, of course, and airing more TV commercials
that portray Sharp as an environmentally advanced company.
“Objective independent assessment of
outstanding technologies—we welcome
this attitude toward new ideas.”
Mr. Yuzuru Yoshinami
Vehicle Component Engineering Department No. 1
Engine Cooling and Vehicle Climate System Engineering Group
Nissan Motor Co., Ltd., Japan
Joint development of world’s first car air conditioner
equipped with a Plasmacluster Ion generator
Demands for cleaner air inside vehicles are increasing, so we
thought about incorporating Sharp’s Plasmacluster Ion
technology in our cars, and this was the catalyst for our working
together. The reason we decided to adopt this technology was
that its outstanding effectiveness and performance had been
scientifically verified by independent third-party organizations.
We overcame problems that are far removed from those involved
in developing home appliances, such as cabin temperatures that
vary from below freezing to baking under the blazing sun,
changes in power supply voltage which are typical in a vehicle,
and more. Nissan has now equipped 11 car models with this
technology. In the future, we hope to see more outstanding new
technologies based on objective assessments.
“We have clearly positioned it as a
cooking appliance for good health,
but we are also working to improve
its heating function.”
Mr. Takashi Tanaka, Chief
Water Oven Product Team
Kitchen Appliance Systems Division, Sharp Corporation
Responsible for development of the Water Oven
Many people who purchase the Water Oven are concerned with
health, and we think the three positive effects of reduced fats,
reduced salt and preserving vitamin C have been well received
by consumers. Plus, the fact that it gets high ratings for “delicious
flavor” is also a gratifying response for those of us involved in
cooking appliance development. In the future, we will be
working to develop more new pre-programmed settings, as well
as improve the product’s attractiveness to consumers by
concentrating on the challenge of shortening the heating time.
“Sharp is committed to enhancing
information dissemination aimed
at consumers.”
Mr. Eisaku Mori, Chief
Eco-Conscious Lifestyles Strategy Project Team
Marketing and Sales Promotion Department
Domestic Sales and Marketing Group, Sharp Corporation
In charge of Eco-Conscious Lifestyle proposal activities
We provided environmental training to the employees of
Taniyama Musen. We also welcomed their feedback on the
content of their training and the suggestions for developing their
stores that we offered under our Eco-Conscious Lifestyle
campaign.
Sharp’s efforts toward Eco-Conscious Lifestyles have been to
propose comfortable, ecology-minded lifestyles to consumers
and retailers through the use of Sharp products. To respond to
the enthusiastic efforts that our retailers are making in
environmental sustainability management, we are committed to
enhancing and improving the development of environmentally
conscious products and to providing consumer-oriented
information.
“We are demonstrating the
effectiveness of new technologies
by using the techniques of industryacademic collaboration.”
Mr. Shigeyuki Harada, Assistant Manager
Second Engineering Department
Home Electronics Business Promotion Center
Appliance Systems Group, Sharp Corporation
Joint development of the world’s first car air conditioner
equipped with Plasmacluster Ion generator
Our collaborative development was highly rated by the people at
Nissan, and we are grateful that we were awarded a Special Prize
for corporate excellence, the most prestigious honor, as one of
their business partners. When putting Plasmacluster Ion
technology into products, we introduced the technique of
collaborating with academic organizations. We proved its
effectiveness scientifically by working together with those
organizations worldwide that are engaged in research at the top
level of their fields.
Sharp will continue working on developing new technologies,
whose effectiveness can be clearly explained to customers by the
companies adopting these technologies.
Sharp Environmental and Social Report 2005
28
The Story Continues:
Sharp Contributes to Society Through
One-of-a-Kind Technology
Sharp’s History of Original Products and Technologies Ever Since Its Foundation
1915
Tokuji Hayakawa Invents the
Ever-Sharp Pencil
1994
Refrigerator with Non-CFC
Vacuum Insulation
Sharp founder Tokuji Hayakawa
invented the first pencil in the world
with a core that could be constantly
pushed out to keep the pencil “sharp” at
all times. First called the Ever-Ready
Sharp Pencil, the name was later
shortened to Ever-Sharp Pencil, which is
the origin of our company name, Sharp.
Sharp developed the first refrigerator in
the world that used no CFCs and thus
did not contain any ozone-layerdepleting materials. Using non-CFC
vacuum insulation and a refrigerant that
does not harm the ozone layer, this
product was the first step in protecting
the ozone layer.
1925
Japan’s First Crystal Radio Set
2001
AQUOS LCD Color TV
Sharp successfully assembled a crystal
radio set. This was Japan’s very first
radio receiver.
Sharp developed the AQUOS as the TV
for the 21st century. The AQUOS
features a high-quality image with the
industry’s highest brightness and a
design by world-renowned industrial
designer Toshiyuki Kita that
handsomely complements the interior
of any home.
1953
Japan’s First TV
Back in 1931, when radio was just
beginning to become popular, Sharp
started research into TVs. In 1951, the
company built Japan’s first prototype,
and two years later started mass
production.
1963
Photovoltaic Module
Sharp began development of solar cells
in 1959 and became the first company
to mass-produce them in 1963. At first,
Sharp’s engineers acted as marketers,
and in May of the same year Sharp
photovoltaic modules were installed on
a buoy in Yokohama harbor.
1964
The Compet All-Transistor
Calculator
This was the world’s first electronic
desktop calculator to use all-transistor
diodes. The Compet was the result of
Sharp’s effort to develop a calculator
that anyone could use anywhere and
anytime.
1973
ELSI Mate LCD Calculator
The world’s first successful application
of a liquid crystal display, the ELSI Mate
was also the world’s first COS (calculator
on substrate) calculator.
1992
LCD Viewcam Video Camera
A revolutionary video camera that
replaced the conventional viewfinder
with an LCD screen that made it easier
to watch while taking videos, the
Viewcam was an instant hit.
29
Sharp Environmental and Social Report 2005
2001
Notebook PC
The 12.1-inch notebook PC came on to
the stage as the world’s thinnest (16.6
mm) and lightest (1.31 kg) notebook PC.
2002
3D LCD
Sharp developed a 3D LCD that requires
no special glasses to see images in 3D.
The product was immediately in the
spotlight for its ability to provide
unprecedented life-like images.
2004
65V-Inch AQUOS LCD TV
Sharp manufactured experimentally and
introduced the world’s largest 65V-inch
LCD TV that uses a full-spec
high-definition LCD panel with a
resolution of 6.22-million pixels—an
industry-first. This incredible leap in
screen size showed LCD technology has
potential for even more innovations in
the future.
2005
Non-CFC Refrigerator with
French Doors
Sharp released a refrigerator with the
industry’s first warming compartment
that keeps dishes at an ideal 55°C. It’s
not only convenient, but also
environmentally conscious, boasting
superb energy efficiency and using
recycled plastic in some of the parts.
Sharp and the Environment
In Pursuit of Becoming an Environmentally
Advanced Corporate Group
Fundamental Orientation and Vision Concerning the Environment
Major Objectives and Fiscal 2004 Results
Advancing Super Green Management
How Business Activities Relate to the Environment
Developing Super Green Technologies
Creating Super Green Products and Devices
Achievement of a Super Green Factory
Reducing Greenhouse Gas Emissions
Minimizing and Recycling Waste
Appropriate Management and Reductions in
the Discharge Risk of Chemical Substances
Promoting Risk Management
Environmentally Conscious Logistics and Packaging
Recycling Used Products
Promotion of Environmental Communication
The Mie Plant, which achieved Super Green Factory status following the Kameyama Plant, in Japan
Sharp Environmental and Social Report 2005
30
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Fundamental Orientation and Vision Concerning the Environment
In accordance with environmental guidelines established under the Basic Environmental Philosophy, the
Sharp Group Charter of Corporate Behavior, and the Sharp Code of Conduct*, Sharp is pursuing environmental
conservation in all aspects of its business activities. Since fiscal 2004, Sharp has raised its mid-term objective
of becoming an “environmentally advanced company” with the new corporate vision of achieving ”zero global
warming impact by 2010.” In future, the company will further strengthen its efforts in environmental conservation.
Basic Environmental Philosophy
Creating an Environmentally Conscious Company with Sincerity and Creativity
The Sharp Group Charter of Corporate Behavior
Contribution to Conservation of the Global Environment
The Sharp Group will fulfill our responsibility for environmental conservation by promoting the creation
of proprietary technologies that contribute to protection of the global environment, and by carrying out
our product development and business activities in an environmentally conscious manner.
The Sharp Code of Conduct
Contribution to Conservation of the Global Environment
1. To Conserve the Environment:
① We will comply with all applicable environmental
laws, regulations and territorial agreements, and work
to practice efficient use and conservation of resources
and energy voluntarily, in the recognition that
environmental conservation is an essential facet of
corporate and individual pursuits.
② We will ensure proper use and control of chemical
substances in our business activities including
research, development and manufacturing, meeting
or exceeding levels determined by laws and
regulations.
③ We will engage in the active acquisition, reporting
and promotion of environmental information at an
international level, as the Sharp Group companies
promote communication with shareholders and local
residents.
④ We understand the importance of internal company
systems and related details in acquiring third-party
certification and recertification of our ISO
environmental management systems, and we will
conduct our business operations in accordance with
relevant internal guidelines.
2. To Develop Environmentally Conscious
Products and Services, and Conduct Our
Business Operations in an Environmentally
Conscious Manner:
① We will engage positively in the minimization of resource
use, reduction in the size and weight of products, use of
recycled materials, and the development of long-lasting,
energy-saving, energy-creating products.
② We will work to compile information related to harmful
substances that might damage the environment or
human health, and will not, as a matter of principle, make
use of these harmful substances in our products, services
and business activities.
③ We will use recyclable materials wherever possible, with
product development focused as a matter of policy on
structures that are detachable or capable of dismantling,
and suited to recycling.
④ We will work aggressively to reduce greenhouse gas
emissions in the full range of our business activities, in
order to contribute to the prevention of global warming.
⑤ We will work to conduct our business in such a way to
select and purchase materials that are harmless to the
global environment, and to local residents and
employees, for the resources needed for business
activities (equipment, raw materials, subsidiary materials,
tools, etc.).
⑥ We realize that waste material is a valuable resource, and
we will actively conduct our business operations in such a
way as to maximize the 3Rs (reduce, recycle and reuse)
and will contribute to minimizing the amount of waste
sent for permanent landfill disposal.
* The Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct were
instituted in May 2005 as a revised edition of the preceding Sharp Charter of Conduct
(instituted in 2003). The section above is an excerpt from descriptions of Sharp’s
environmental conservation efforts.
31
Sharp Environmental and Social Report 2005
Fundamental Orientation and Vision Concerning the Environment
Corporate Vision of Achieving “Zero Global Warming Impact by 2010”
In fiscal 2004, Sharp set a new corporate vision of becoming a company that has
zero global warming impact by 2010. This is a concept to limit to the greatest
extent possible the amount of the greenhouse gas emissions resulting from
Sharp’s business activities around the world, while at the same time,
significantly increasing reductions in greenhouse gas emissions based on the
energy-creating effects of solar cells and the energy-saving effects of new
products manufactured by Sharp. The idea is for the amount of greenhouse
gas emissions reduced to exceed the amount emitted by fiscal 2010.
Million t-CO2
Sharp’s greenhouse gas emissions in fiscal 2004 were approximately 1.51
million t-CO2*1. At the same time, it is estimated that the solar cells that Sharp
produced over the 20 years up to 2003 generated approximately 542 GWh*2 in
fiscal 2004. This is equivalent to a reduction in greenhouse gas emissions of
approximately 0.24 million t-CO2*3.
*1 For details, see page 47.
*2 Calculation based on 521 MW, Sharp’s total solar cell production over the 20 years from 1984 to
2003. The figure 521 MW is based on data from the Optoelectronic Industry and Technology
Development Association for 1984 to 1988 and from PV News for 1989 to 2003.
*3 Calculated using a CO2 emission unit of 0.436 kg/kWh (fiscal 2003) at the receiving end,
announced by the Federation of Electric Power Companies of Japan.
Greenhouse
gas
emissions
Greenhouse
gas
reductions
Reductions surpass
emissions
1.44
1.51
0.14
2003
0.24
2004
2010
(fiscal year)
Note: The greenhouse gas reduction amount is a result of using photovoltaic
power generation and does not include the amount reduced through the use of
new energy-saving products.
Becoming an Environmentally Advanced Company
Developing unique environmental
technologies that contribute to
environmental conservation
Creating products and devices
with high environmental
performance
Sharp categorizes environmental technologies
in two aspects: 1) technologies that contribute
to global environmental conservation and the
improvement of living environments, and 2)
technologies that reduce the burden on the
environment. Sharp is also promoting the
development of unique environmental
technologies based on five themes, including
the prevention of global warming, effective use
of resources and reduction of chemical
substances.
(For details, see pages 41 and 42).
Sharp upholds stricter-than-average evaluation
items and authorization criteria to improve the
environmental performance of its products
and devices, thus endeavoring to create Super
Green Products and Super Green Devices with
extremely high environmental performance.
(For details, see pages 43 and 44).
Factories with high
environmental consciousness
Sharp coexists in harmony with the natural
environment and earns the trust of the local
community through efforts that minimize
burdens on the environment. Such efforts
include the introduction of cogeneration
systems and photovoltaic power systems. They
also include the substitution of greenhouse
gases, the installation of scrubbers to reduce
damage from greenhouse gases, the reduction
and recycling of waste into valuable material,
the reuse of wastewater and fluids, the
substitution of harmful chemicals, and more.
(For details, see pages 45 and 46).
Creating
“Super Green”
Products
and Devices
Environmentally
Advanced
Company
Promoting
Developing
“Super Green”
Technologies
“Super Green”
Management
Building
“Super Green”
Factories
Enhancing environmental
sustainability management
Sharp is improving its levels of environmental
sustainability management and employees’
environment-consciousness. We implement
unique measures, such as introducing and
expanding the Sharp Environmental
Management System (S-EMS), strengthening
compliance with environmental directives,
utilizing environmental management
accounting, as well as promoting
environmental education and environmental
social contribution activities.
(For details, see pages 35 to 38).
Note: Sharp certifies its products, devices and factories as
“Super Green” based on proprietary assessment criteria and
certification standards established by Sharp.
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ The Sharp Group Charter of Corporate Behavior (full text)
■ The Sharp Code of Conduct (full text)
Sharp Environmental and Social Report 2005
32
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Major Objectives and Fiscal 2004 Results
Sharp does business in line with a three-year medium-term plan, which is combined with annual objectives. To
develop the medium-term plan, the company conducts a review each year before formulating annual objectives, and
establishes new goals and specific action programs for each fiscal year. Similarly, the company pursues environmental
activities based on a three-year medium-term plan with annual objectives. For fiscal 2004, Sharp set a long-term goal of
achieving its new corporate vision of becoming a Zero Global Warming Impact Company by 2010*1.
Fiscal 2004 Achievements
For fiscal 2004, Sharp defined its medium-term goal of becoming an Environmentally Advanced Company and established the corporate vision
stated above. That year can be regarded as the inaugural year marking
the point where Sharp made a definitive shift in corporate management
toward the environment.
In fiscal 2004, Sharp also constructed the system that is the foundation
for achieving its goal of becoming such a company. The system focuses
on areas that form the core of Sharp’s business, including technologies,
products/devices and production facilities. Sharp reinforced these efforts by establishing far-reaching targets, which enable the company to
achieve results close to the desired levels.
In the development of environmental technologies, Sharp is steadily enhancing the environmental performance of new products. The percentage
of sales accounted for by Green Seal Products*2 reached approximately
74%. Six products entered the new Super Green Product*2 category
introduced in the second half of the fiscal year, and the percentage of
sales accounted for by Green Devices*2 reached approximately 24%. The
company also took up the challenge of improving the environmental performance of its manufacturing facilities. Super Green Factory*3 certification was attained for its Mie Plant, the first for an operating production
facility, and following in the footsteps of the Kameyama Plant last year.
Sharp also achieved its major objectives in all areas. The company
advanced the introduction of its own S-EMS environmental management
system, launched e-learning, reduced the amounts of regulated chemical
substances in products, and achieved zero discharge of industrial waste
to landfills*4 at domestic production sites (companies) as a whole for the
fourth straight year. Sharp also reduced the risk of hazardous chemical
substances it released into the environment, set up a recycling system in
Europe, reduced CO2 emissions from logistics activities, and launched
various Sharp Green Club (SGC) campaigns.
Major Objectives and Achievements in Fiscal 2004
Stages
Environmental
Sustainability
Management
Looking toward fiscal 2007, the year it intends to achieve its mediumterm plans, Sharp has set far-reaching targets that it expects to achieve
as an Environmentally Advanced Company. The goals for fiscal 2007
comprise Green Seal Products accounting for 90% of sales and including
35% Super Green Products. Green Devices are to comprise 75% of sales
with Super Green Devices*2 accounting for 15%. All domestic and overseas production sites (companies) are to be certified as Green Factories*3,
and among them, all Sharp Corporation production sites are to be Super
Green Factories. All of these goals present significant difficulties, but
the company will resolutely confront such challenges, and as an Environmentally Advanced Company, Sharp will work to contribute to building
a sustainable society.
• For more details, please refer to the page numbers below.
*1 Page 32, *2 Page 43, *3 Page 45, *4 Page 48, *5 Page 47
• Green Seal Products, Super Green Products, Green Devices and Super Green Devices
designated as *2, as well as Super Green Factories and Green Factories designated as *3, are
certified following Sharp’s own evaluation criteria and certification standards.
33
Sharp Environmental and Social Report 2005
Enhance and
expand
environmental
management
system
Major Objectives
Implement Sharp Environmental
Management System (S-EMS)
Acquire ISO 14001 certification
Establish tools for environmental Introduce environmental management accounting and develop
sustainability management
tools for promoting environmental sustainability management
Hold environmental
Hold environmental seminars
education programs
Promote closed-loop plastic material recycling
Establish
3R technologies
Commercialization of materials to facilitate disassembly
(easy-release fasteners)
Establish recycling technologies for LCD TVs
Planning
and
Design
Improve safety
of components
and materials
Use lead-free solder in all products
Develop
Green
Products
Increase Green Seal Productsʼ share of net sales in Japan*1
Develop
Green Devices
However, despite redoubling its efforts, the company was not able to
reach its goal of reducing the amount of CO2 emissions per production
unit from domestic production sites because of declines in the shipped
prices of manufactured products. Nevertheless, Sharp was able to
restrain growth in greenhouse gas emissions as a whole*5. Targets for
percentage of sales of Super Green Products were not reached, but the
company is committed to achieving them in the future.
Future Efforts
Themes
Manufacturing
Reduce chemical substances in products
Increase Super Green Products’share of net sales in Japan
Increase Green Devices’share of net sales*2
Increase Super Green Devices’share of net sales
Convert
factories to
Green Factories
Build Green Factories and Super Green Factories
Reduce
greenhouse
gas emissions
Reduce CO2 emissions (per production unit)
Reduce
and recycle
waste
Reduce the amount of waste discharged (per production unit)
and promote conversion to valuable materials
Reduce risk
from harmful
chemicals
Reduce discharge risk of
chemicals under high-priority control
Logistics
Reduce
distribution-related Change modes of transportation in Japan
CO2 emissions
Recycling
Recycle
used products
Enhance and improve recycling systems
Social
Responsibility
Social
contribution
activities
Expand and diversify environmental
social contribution activities
*1 The sales ratio of Green Seal Products includes sales of Super Green Products.
*2 The sales ratio of Green Devices includes sales of Super Green Devices.
Fiscal 2004 Achievements
SelfEvaluation
Introduce S-EMS at 28 domestic
non-production sites
Completed introduction of S-EMS
at 28 domestic non-production sites
○
Complete introduction of S-EMS
at all 50 domestic non-production sites
Acquire certification at all domestic and
overseas production sites (companies)
Acquire certification at 8 overseas
non-production consolidated subsidiaries
Completed certification at all production sites
(companies) (16 in Japan; 22 overseas)
Completed certification at 8 overseas nonproduction consolidated subsidiaries (total 17)
○
Complete certification at
all overseas non-production
consolidated subsidiaries (total 21)
Introduce pilot version of environmental
management accounting as a tool to promote
environmental sustainability management
Completed introduction of pilot version of
environmental management accounting
○
Introduce environmental management
accounting to all domestic
production sites (companies)
Develop tools to provide
feedback to management
General: Begin e-learning in Japan
Expert: Continue
Compliance: Hold programs
for overseas production sites
General: 25,308 participants (80.2%)
Expert: 11 recycling training sessions
Compliance: 15 sites in 7 Chinese
and Asian nations
○
General: Continue e-learning
Expert: Continue
Compliance: Hold programs
at North American and European sites
General: Encourage e-learning to take root
Expert: Environmental leader training
(develop framework for 200 individuals)
Use 420 tons of recycled plastics
in new products
420 tons of recycled plastics used in
new products
○
Use 500 tons of recycled plastics
in new products
Use 1,000 tons of recycled plastics
in new products
Use in communications equipment
Researched use of easy-release fasteners
in communications equipment
○
Use in communications equipment
Use in audio/video equipment
Develop LCD panel
recycling technology
Guidelines set for recycling
LCD panels
○
Develop recycling technologies
for LCD TV cabinet materials
Develop technology to recover
indium from LCD panels
Eliminate all lead solder
(in new products for main markets*3)
Eliminated all lead solder
(in new products for main markets*3)
○
Eliminate all lead solder
(in new products for all markets)
—
42
Eliminate all six RoHS substances
(in new products for main markets*3)
Eliminated all six RoHS substances
(in new products for main markets*3)
○
Eliminate all six RoHS substances
(in new products for all markets)
—
44
Green Seal products
accounting for 65% of net sales
Green Seal products
accounted for 73.9% of net sales
◎
Green Seal products
accounting for 80% of net sales
Green Seal products
accounting for 90% of net sales
Super Green Products accounting
for 10% of net sales (2nd half-year)
Super Green Products accounted
for 5.4% of net sales (2nd half-year)
×
Super Green Products
accounting for 20% of net sales
Super Green Products
accounting for 35% of net sales
Green Devices accounting
for 40% of net sales
Green Devices accounting
for 75% of net sales
Super Green Devices
accounting for 5% of net sales
Super Green Devices accounting
for 15% of net sales
○
Japan:
Raise average improvement rate of
environmental performance at
Sharp Corporation production sites by 11%
compared to fiscal 2003 and upgrade 4 domestic
subsidiaries/affiliates to Green Factories
Overseas:
Upgrade 4 production sites to Green Factories
Upgrade all 10 Sharp Corporation
production sites to Super Green
Factories
Upgrade all other domestic and
overseas production sites
(companies) to Green Factories
×
Japan:
Product sites: Reduce by 2%
from previous fiscal year
Device sites: Reduce by 5%
from previous fiscal year
Overseas:
Reduce by 2% from previous
fiscal year at production sites
Goal for fiscal 2010:
Reduce by 25% compared
to fiscal 1990 per real production
unit*4 (Japan)
△
Japan:
Recycle 14% of waste into
valuable materials
Overseas:
Reduce by 2% per production
unit from previous fiscal year
Japan:
Recycle 16% of waste
into valuable materials
Overseas:
Reduce by 2% per production
unit from previous fiscal year
Fiscal 2004 Objectives
Green Devices accounting
for 5% of net sales (2nd half-year)
Green Devices accounted
for 23.9% of net sales (2nd half-year)
Japan:
Upgrade 2 Sharp Corporation
production sites to Super Green
Factories and 8 production sites and
2 domestic subsidiaries/affiliates to
Green Factories
Overseas:
Assess all 22 production sites
Japan:
2 Sharp Corporation production sites
upgraded to Super Green Factories and
8 production sites and 2 domestic
subsidiaries/affiliates to Green Factories
Overseas:
Completed assessment
of all 22 production sites
Japan:
Product sites:
Reduce by 2% from previous fiscal year
Device sites:
Reduce by 5% from previous fiscal year
Overseas:
Reduce by 2% from previous fiscal year
Japan:
Recycle 12% of waste into valuable materials
Overseas:
Reduce by 2% per production unit
from previous fiscal year
Japan:
Product sites: Increased by 14%
from previous fiscal year
Device sites: Increased by 3%
from previous fiscal year
Overseas:
Reduced by 6% from previous
fiscal year at production sites
Reduce discharge risk of chemicals
by 20% compared to fiscal 2003
at Sharp Corporation production sites
Japan:
Recycled 11% of waste into valuable materials
Overseas:
Reduced by 5% per production unit
from previous fiscal year
Discharge risk of chemicals
reduced by 30%
compared to fiscal 2003 at
Sharp Corporation production sites
◎
◎
Fiscal 2005 Objectives
Fiscal 2007 Objectives
Complete introduction of S-EMS
at all domestic and overseas
production sites (companies)
37, 38
36
41, 42
43, 44
45, 46
47
48
Reduce discharge risk of chemicals
by 30% or more compared to fiscal
2003 at Sharp Corporation
production sites
Railway cargo transport of 900
containers/month
Reduce CO2 emissions by 3,500 tons
Railway cargo transport of 1,100
containers/month
Reduce CO2 emissions by 4,000 tons
51, 52
53, 54
Reduce discharge risk of chemicals by
50% or more compared to fiscal 2003
at Sharp Corporation production sites
Railway cargo transport of 770
containers/month
CO2 emissions reduced by 3,170 tons
◎
Build collection/recycling system
in EU countries
Participated in building recycling systems in
European countries. In Germany, jointly
established a unique recycling scheme called
ProReturn with Loewe and Philips.
○
Begin smooth operation of
recycling system in Europe
Efficient operation of
recycling systems
○
Japan:
Total 30,000 employees from 29 sites (almost
all employees) participating in SGC activities
Overseas:
Expand number of active sites to 30
Japan: Total 45,000 employees participating in
SGC activities (1.5 times for each employee)
Overseas: Enhance, expand and encourage
SGC activities to take root
Japan: Total 23,964 employees from 29
sites (approx. 80% of all employees)
participated in SGC activitis
Overseas: Number of active sites
expanded to 24
35, 36
—
Railway cargo transport of
625 containers/month
Reduce CO2 emissions by 3,000 tons
Japan: Total 10,000 employees from
29 sites (one-third of all employees)
participating in SGC activities
Overseas: Expand number of active
sites to 30
See
page(s)
49
68∼70
*3 Main markets: North America, Europe, China and Japan
*4 Per real production unit (t-CO2/100 million yen) = CO2 emission (t-CO2) ÷ production output (100 million yen) ÷ domestic corporate price index (electrical equipment) determined by the Bank of Japan
Sharp Environmental and Social Report 2005
34
Major Objectives and Fiscal 2004 Results
Self Evaluation ◎ Achieved more than targeted ○ Achieved as targeted △ Achieved more than 80% of initial target × Achieved less than 80% of initial target
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Advancing Super Green Management (1)
Under the environmental sustainability management system of the Environmental Protection Group, Sharp is
dedicated to steadily improving its environmental sustainability management level and employees’ commitment
to environmental conservation. Efforts toward this goal include adding environmental criteria to the evaluation of
business group achievements, introducing Sharp’s original environmental management system S-EMS*1, utilizing
environmental management accounting, and promoting environmental education.
Objectives for Fiscal 2004
Achievements
● Introduce S-EMS at 28 domestic non-
Completed introduction of S-EMS at 28
domestic non-production sites
● Acquire ISO 14001 certification at all
Completed ISO 14001 certification at 16 domestic
and 22 overseas production sites (companies)*3
production sites
domestic and overseas production sites
(companies)
● Acquire ISO 14001 certification at
8 overseas non-production consolidated
subsidiaries
Objectives for Fiscal 2005
Objectives for Fiscal 2007
● Complete introduction of S-EMS at all
50 domestic non-production sites*2
● Complete introduction of S-EMS
at all domestic and overseas
production sites (companies)
Completed ISO 14001 certification at 8 overseas ● Complete ISO 14001 certification at all
overseas non-production consolidated
non-production consolidated subsidiaries
subsidiaries*2
(for a total of 17 subsidiaries so far)
(for a total of 21 subsidiaries so far)
*1 Sharp Environmental Management System
*2 Sites (companies) of less than 30 employees are excluded.
*3 Excluding the Chinese production subsidiary STW, which just started production in fiscal 2004. (STW will be certified within fiscal 2005.)
Environmental Sustainability
Management System Centered on
the Environmental Protection Group
The Environmental Protection Group holds
an environmental strategy conference as
the governing legislative body for the Sharp
Group’s environmental sustainability management policies. At the conference, overseen by
the director in charge of environmental affairs,
participants discuss and decide on important
matters such as environmental guidelines,
strategies and objectives. The Group also hosts
company-wide environmental conferences
for sites to discuss and report on progress and
establish concrete action plans for the future.
The Group also gathers representatives from
Sharp’s main sites every second year to a
global environmental conference, where
participants not only gain a deeper understanding of environmental guidelines, strategies and
objectives, but also discuss specific themes
and case reports from the sites.
Environmental conferences also take place
regionally in the US, Europe, ASEAN and
China.
The Environmental Protection Group and departments in charge of environmental matters
at all sites work closely together.
Integrating Environmental Criteria
into the Evaluation of Business
Group Accomplishments in Japan
Sharp raised the bar for environmental performance in fiscal 2000, when it first included
environmental criteria in the business group
accomplishment evaluation system that is used
semi-annually to evaluate all business group
contributions to corporate management.
By fiscal 2003, Sharp included five additional
criteria—a Green Product* attainment ratio,
Green Seal* acquisition ratio, CO2 reduction
ratio, zero discharge to landfill attainment
ratio and chemical management index—yielding the positive results of increased Green Seal
products, the attainment of zero discharge to
landfill (since fiscal 2001) and reduced use of
chemicals.
In fiscal 2004, Sharp introduced a new business
evaluation system, which reflected two important items: a sales ratio of Green Products and
Devices* and CO2 reduction volume.
Sharp will set forth precise environmental
measures to help all business groups enhance
their levels of environmental sustainability
management and support the entire Sharp
Group in achieving its objectives and environmental vision.
Acquiring ISO 14001 Certification
Sharp is striving to achieve ISO 14001 certification as a management tool for continuously
reducing the burden its business activities
place on the environment. All of Sharp and its
domestic and overseas consolidated subsidiaries are eligible sites (companies) for certification, as well as all domestic and overseas
non-consolidated production subsidiaries and
affiliates.
In 1995, Sharp began working toward ISO
certification, and by fiscal 2004, all production
sites (companies)*1, including 16 domestic and
22 overseas bases, had successfully achieved
ISO 14001 certification. In addition, all domestic non-production sites (companies)*2 have
been certified, and Sharp plans to certify all
overseas non-production consolidated subsidiaries (total 21 companies)*2 within fiscal
2005.
*1 Excluding the Chinese production subsidiary STW,
which just started production in fiscal 2004. (STW will
be certified within fiscal 2005.)
*2 Sites (companies) of less than 30 employees are
excluded.
* For details on Green Seal Products, Green Products and
Green Devices, see pages 43 and 44.
■ Environmental sustainability management system
Management Strategy Conference
Overseen by the President
Environmental Strategy Conference
Overseen by the director in charge of environmental affairs
• CO2 Reduction Committee
• Waste Reduction Committee
• PFC Countermeasure Committee
• Green Procurement Promotion
Project Team
• Recycling Technology Development
Project Team for LCD Application
Products
• Company-Wide Lead-Free
Soldering Technique Liaison
Committee
Environmental Conferences/
Committees at All Domestic Sites (Companies)
35
President Machida speaks at the Fourth Global
Environmental Conference (held in November 2004)
Global Environmental Conference
Company-Wide Environmental Conference
Overseen by the director in charge of environmental affairs
• Company-Wide Special Safety
Management Committee
• Chemical Substances Control
Committee
• PRTR Measures Work
Group
• Sharp Chemical
Management System
(S-CMS) Work Group
• Risk Communicator Liaison
Committee
Overseen by the director in charge of environmental affairs
Pan-American
Environmental
Meeting
Pan-European
Environmental
Meeting
ASEAN
Environmental
Meeting
China
Environmental
Meeting
Environmental
Conferences at each
subsidiary
Environmental
Conferences at each
subsidiary
Environmental
Conferences at each
subsidiary
Environmental
Conferences at each
subsidiary
Sharp Environmental and Social Report 2005
Participants of the Fourth Global Environmental Conference
Introducing the Sharp Environmental
Management System (S-EMS)
By fiscal 2004, Sharp had already introduced
S-EMS into 10 production and 28 main nonproduction sites in Japan. Continuing in fiscal
2005, Sharp plans to complete the introduction
of S-EMS into all domestic non-production
sites (total 50 sites)*. Sharp will further accelerate introduction into its production sites
(companies), aiming for complete introduction
into all its domestic and overseas production
sites (companies) in fiscal 2007.
* Sites (companies) of less than 30 employees are excluded.
■ S-EMS structure
Stepping Up Environmental
Education
The Environmental Protection Group is also
carrying out “green auditing” at sites (companies) where S-EMS has already been introduced. As a general auditing measure, green
auditing provides a comprehensive understanding of company-wide environmental policies
and evaluates environmental performance,
environmental compliance and operational
safety to confirm the operating status of
S-EMS. Through these measures, Sharp aims
to not only boost environmental management
at all sites (companies), but also to improve
and expand the contents of S-EMS to make it a
more effective management system.
In fiscal 2004, Sharp conducted green auditing
at eight domestic production sites to identify
problems and areas for improvement. The
audits revealed that S-EMS was operating
soundly at all sites, without any major problems.
In fiscal 2004, Sharp launched an e-learning
seminar for environmental education in Japan.
This “environmental basics” seminar was offered via the company intranet to approximately 32,000 employees of the domestic Sharp
Group. 25,308 people completed the course.
For specialized environmental education,
Sharp held a “design for recycle” seminar. In
the actual training for engineers in charge of
product design, participants joined the
plant’s disassembly line and took apart products, allowing them a firsthand perspective for
making suggestions and improvements on the
recycling design and disassembly process.
Sharp also held environmental education
seminars in China and Asia at 15 production
companies. In fiscal 2005, Sharp plans to extend these seminars to its bases in the US and
Europe.
Sites
ISO 14001 requirements
+
Original management items (49 clauses)
Examples:
・ Clarification of intracompany qualifications for legal designators
・ Periodic special education and training for persons and supervisors
who are working in areas covered by laws and regulations and other
required items
・ Prepare work procedure manuals for required items concerned with
relevant laws, and make self-auditing obligatory
Environmental Protection Group
Green Auditing
・ Introduction of S-EMS and evaluation of its usage
・ Making environmental strategies company-wide
・ Confirming environmental performance management
・ Evaluating environmental compliance
・ Evaluating operational safety
Education of S-EMS Auditors
Since Sharp’s internal auditing also requires
the inspection of original management items at
S-EMS sites, Sharp auditors need higher auditing abilities than those required for ISO 14001
alone. That’s why the Environmental Protection Group established the S-EMS Auditor
Certification System, offering S-EMS training
seminars for auditors.
Based on this certification system, approximately 560 auditors completed S-EMS auditor
certification in Japan by fiscal 2004. In future,
Sharp plans to foster leaders who can train
auditors and improve auditors’ skills.
Green auditing
Company-wide environmental e-learning
Reinforcing Environmental
Compliance
In fiscal 2001, Sharp established the Environmental Compliance Program to focus on creating systems and a corporate mindset conducive
to adhering to environmental laws. To promote
this program company-wide, Sharp established
the Environmental Compliance Committee in
fiscal 2002.
Sharp reorganized the structure for reinforcing environmental compliance in fiscal 2005.
The company transferred the role of the
Environmental Compliance Committee to the
Company-Wide Environmental Conference
for production sites and to the CSR and BRM
(business risk management) Promotion Conference supervised by Sharp’s Domestic Sales and
Marketing Group for non-production sites.
Looking ahead, the Environmental Protection Group aims to continue to strengthen this
intracompany system for observing environmental laws by providing the latest information on environmental legislative control and
necessary training seminars for all sites, as
well as confirming Sharp’s compliance with
environmental laws.
Seminar at an overseas production subsidiary
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Table of ISO 14001-certified sites (companies)
■ Examples of Sharp’s environmental education
Sharp Environmental and Social Report 2005
36
Advancing Super Green Management
To reinforce environmental compliance and
enhance environmental efforts, Sharp established the S-EMS, a standard of 49 original
management clauses to supplement those specified under ISO 14001 standards. In fiscal 2002,
Sharp began introducing S-EMS at all its sites.
Execution of Green Auditing
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Advancing Super Green Management (2)
Environmental Accounting
The Sharp Group introduced environmental accounting in Japan in
fiscal 1999 as a tool to provide a quantitative assessment of the costs
and effectiveness of its environmental conservation activities, and has
applied the results to environmental sustainability management.
Introduction
Classification of Environmental Conservation Activities
Category based
on Guidelines*
Description of Major Environmental
Conservation Activities
Management
activities
• Operation of environmental
management system
• Promoting environmental
sustainability management
• Environmental education activities
R&D
• Promoting closed-loop recycling
of plastic materials
• R&D on next-generation
solar cells
• R&D on basic environmental
technologies
Controlling
greenhouse gas
emissions
Global
environmental
conservation
• Introducing scrubbers for PFCs
• Installing photovoltaic power
systems and cogeneration
equipment
Discharge control
and recycling of
waste
Recycling
resources
• Reducing waste discharge
and recycling waste into valuable
materials
Preventing
pollution
Preventing
pollution
• Introducing specific gas
discharge treatment systems
• Installing scrubbers
Environmental
Sustainability
Management
Beginning last fiscal year, the Sharp Group adopted a disclosure format tailored to
the classifications of Sharp s environmental sustainability management activities.
The format follows the Environmental Accounting Guidelines 2005 (published
by the Ministry of the Environment), which were revised in 2005, with two points
amended as follows:
2) Addition of inferred effects to economic effects
In the past, the effects of environmental conservation activities at Sharp’s sites
covered only those items that could be assessed in terms of actual monetary
amounts. Beginning this fiscal year, however, the company revised its internal
standards to be able to assess inferred effects by calculating monetary amounts
based on reduced levels of environmental burden and electricity savings resulting from the use of energy-efficient products. This revised approach has made
it possible to assess the economic effects of environmental conservation activities not only within the company, but also in terms of contributions to society.
Disclosure Process
Planning and Design
Manufacturing
1) Rigorously calculating depreciation
Calculation methods for depreciation associated with investments related to
environmental conservation were brought in to conformance with financial accounting standards.
Relationship between environmental conservation costs, economic
effects, environmental conservation effects and environmental burden
These relationships are organized in a single table with environmental conservation costs, monetary impacts and the effects of environmental conservation
arranged horizontally according to the category of environmental conservation
activity at Sharp.
Describing environmental conservation effects
Sharp selected and disclosed measurable indexes that best represented the effects
resulting from Sharp’s implementation of environmental conservation activities.
In addition, data for levels of environmental burden for two consecutive years is
also provided as a way to gain a better picture of the effects of environmental conservation by comparison with environmental burden in the previous fiscal year.
Recycling/Logistics
Upstream/
downstream
• Promoting collection, recycling
and proper disposal of used
products
Social Responsibility
Social activities
• Expanding social contribution
activities
Calculation Methods
Environmental conservation costs
Environmental conservation expenses are based on reporting differences in costs
relative to normal business activities, and are calculated from overhead costs
and personnel expenses associated with environmental conservation activities,
investments intended to protect the environment, and attendant depreciation. Note
also that depreciation is calculated in accordance with the Sharp Group’s financial
accounting standards.
Economic effects
Economic effects are the combination of real effects that can be assessed in the
form of actual monetary amounts such as revenue and cost savings derived from
environmental conservation activities, and inferred effects that are monetary
equivalents of environmental conservation effects and economic effects on consumers resulting from the use of environmentally conscious products.
Calculation of real effects
Real effects include energy efficiency measures, reductions in waste treatment/disposal
fees, profit on the sale of valuable resources, use of recycled water, etc.
Calculation of inferred effects
Inferred effects include the following: 1)Environmental conservation effects (reduced
greenhouse gas emissions) at sites converted into equivalent monetary amounts, 2)Environmental conservation effects from the use of solar power and energy-saving products
(reduced greenhouse gas emissions) and electricity savings converted to equivalent
monetary amounts
Note that the following conversion factors were used in calculating equivalent monetary amounts:
・ Cost required to reduce greenhouse gas emissions by 1 ton: 735 yen/t-CO 2 (US$7/t-CO2)
・ Unit cost of electricity used in calculating electricity savings: 23 yen/kWh
37
Sharp Environmental and Social Report 2005
Total
What Environmental Accounting Reveals
Continuing from the previous fiscal year, production output grew in this fiscal
year, centered on energy-creating and energy-saving products, and thus, the level
of environmental burden also continued to trend upward. In this light, Sharp placed
particular emphasis this fiscal year on controlling greenhouse gas emissions.
The Mie and Kameyama sites introduced scrubbers and both sites have now completed installation on all its production lines that use PFCs. In addition, Sharp has
taken positive steps to save energy at all sites (companies), including the introduction of large-scale energy-saving equipment at the Fukuyama and Katsuragi sites.
Sharp is also promoting the installation of photovoltaic power systems and has completed installation at all Sharp Corporation production sites by this fiscal year.
Investment in measures to reduce greenhouse gas emissions totaled approximately
4.1 billion yen, accounting for nearly two-thirds of the total amount (approximately
6.2 billion yen) invested in environmental conservation. The results indicate that
dramatic growth in production output superceded the effects of energy conservation, and thus, the company was not able to fully compensate for increased CO2
emissions, which were 23% above the levels of the previous fiscal year. However,
the company was able to significantly reduce PFC gas emissions, which were 77%
of the previous fiscal year s levels.
Economic
Effects
Environmental
Conservation
Costs
(Unit: ¥ million)
Investment
Real Inferred
Effects Effects
(Unit: ¥ million)
Expenses
Environmental Burden
See
page(s)
Environmental Conservation Effects
Index
Fiscal 2003
Fiscal 2004
Promoting environmental sustainability management
15
Number of sites that acquired ISO 14001 certification
1,458
—
—
511
Number of employees who received general environmental training
Number of employees who received specialized environmental training
−
35∼38
−
41∼44
530
Number of employees who participated in basic e-learning classes
25,308
Supplying environmentally conscious products
73.9%
Green Seal productsʼ share of net sales
—
764
—
5.4%
Super Green productsʼ share of net sales (2nd half-year)
13,434
Total amount of power generated by photovoltaic power systems
541,621MWh
CO2 emission control effect
CO2 emission control effect through energy-saving
design/development
236,147t-CO2
15,026t-CO2
Energy applied
14,896TJ
18,178TJ
CO2 emissions controlled
70,567t-CO2 CO2 emissions
675,852t-CO2
829,575t-CO2
PFC emissions controlled
265,945GWPt PFC emissions
550,280GWPt
424,743GWPt
172,866 tons
204,713 tons
Greenhouse gas emissions reduced by controlling electricity and fuel consumption
4,101
1,986
1,207
247
Waste recycled or sent for appropriate disposal
180
2,672
955
—
Waste
Waste generated
(received
0.02% Water consumption volume)
Final landfill disposal rate
Recycled and reused water
1,862
4,208
—
—
14,421,000m3 Total drainage
220
90
44 tons
11,863,000m3
12,959,000m3
10,252,000m3
9,212,000m3
Observed environmental laws and regulations
SOx emissions
1.7 tons
6.4 tons
Prevented air/water pollution and noise/vibration
NOx emissions
61.2 tons
113.8 tons
Promoted risk management
COD emissions
Chemical substances properly managed and correctly disposed of
PRTR-designated chemical
substances handled
Reduced risk of soil contamination
PRTR- designated chemical
substances released/transferred
Collection, recycling and proper disposal of used products
0
97 tons
96,281 tons Final landfill disposal rate
Waste recycled
2
Released: 13.7 tons
150,680,000 t×km
Total transportation
Recycled
Used home-use PCs
Recycled
Used copiers
Collected and recycled
Used home appliances (4 categories)
Recycled
17.8 tons Total product shipment
1,830 tons Container/packaging
34,344 tons
21.8 tons
4,089 tons
136 tons Transferred: 149.2 tons
2.6 tons CO2 emissions
Used business-use PCs
26 tons
3,907 tons
45∼49
170,000,000 t×km
23,584t-CO2
26,697t-CO2
512,239 tons
549,395 tons
18,381 tons
17,696 tons
materials used
51∼54
Environmental burden during distribution reduced
3,170t-CO2
CO2 emissions controlled
615
Number of low-pollution vehicles introduced
0
54
6,196
11,362
—
2,252
—
Environmental social contributions
13,683
Environmental Accounting Scope
and Time Period
Sites covered
A total of 15 sites (companies) in Japan fall within the scope of
environmental accounting: Sharp Corporation sites at Tochigi,
Yao, Hiroshima, Nara, Katsuragi, Fukuyama, Mie, Tenri, Mihara, Kameyama and Tanabe, the business premises of Sharp s
head office, Sharp Manufacturing Systems Corporation, Sharp
Niigata Electronics Corporation and Sharp Takaya Electronic
Industry Co., Ltd.
̶
Total 23,964
Number of employees who attended SGC activities
* Environmental Accounting Guidelines 2005, the Ministry of the Environment, Japan
Effect of Controlling Greenhouse Gas Emissions
To make it easier to understand Sharp s activities aimed at protecting the environment, the results of
our efforts to control greenhouse gas emissions are indicated by comparing the amount of reduction
in emissions to a baseline* value. By comparing the environmental impacts for this fiscal year with
this baseline, the reader will be able to determine the degree to which environmental impacts have
been reduced as a result of on-going environmental conservation activities that would be difficult to
grasp in a year-on-year comparison.
* The baseline represents the environmental impact that would have occurred in the same period if no environmental conservation activities had been implemented.
CO2
Period covered
April 1, 2004 through March 31, 2005
Referenced guidelines
Environmental Accounting Guidelines 2005 published by the
Ministry of the Environment, Japan
68∼70
Increase of
153,723 tons
over previous year
900,142 tons
675,852 tons
Fiscal
2003
Baseline
Reduction of
70,567 tons from
environmental
conservation
effects
829,575 tons
Fiscal
2004
results
PFC
Reduction of 125,537
GWPt over
previous year
690,688GWPt
550,280GWPt
Fiscal
2003
Baseline
Reduction of
265,945 GWPt
from environmental
conservation effects
424,743GWPt
Fiscal
2004
results
Sharp Environmental and Social Report 2005
38
Advancing Super Green Management
53
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
How Business Activities Relate to the Environment
Sharp determines numerical values that represent the relationship between its business activities and the
environment, using them to improve environmental sustainability management. By taking these numerical values
at all stages of its business activities and using them to create proposals for measures, as well as to analyze and
assess results, Sharp is aiming to effectively reduce the burden it places on the environment.
INPUT
Energy consumption 21,911TJ※1
PFCs purchased
LPG
Electricity
1,894 million kWh
Japan 1,635 million kWh
Overseas 259 million kWh
Japan
2.55 million GWPt
14,821 tons
※2
Japan 10,713 tons
Overseas 4,108 tons
Chemical substances
(PRTR) handled
City gas
53.1 million m3
3
Japan 49.915 million m
Overseas 3.185 million m3
Heavy oil, kerosene,
gas oil, gasoline
11,605 kl
15.484 million m3
Packaging materials
Japan and overseas
631,000 tons
※3
Japan
17,696 tons
3 Total weight of products in the
15 major categories shipped in
fiscal 2004 (estimate) and waste
generated from production sites.
2 Global warming potential.
The value of the scale of
impact on global warming
converted into CO2 weight.
※
Resources consumed
Japan 13.254 million m3
Overseas 2.230 million m3
Japan
4,089 tons
Japan 9,448 kl
Overseas 2,157 kl
1 TJ=1012J
Water consumed
※
※
Flow of Sharp Group business activities
Technological development,
planning, design
Sharp develops technology for reducing
the burden on the environment: products
are designed to be energy saving, use
minimum resources, and adhere to the
“3R”※ principle.
※
Manufacture
Materials procurement
Based on Sharpʼ s own Green
Procurement Guidelines, the entire
Sharp Group purchases parts and
materials that are environmentally
conscious.
In addition to striving to reduce the
burden on the environment, Sharp also
works to make manufacturing activities
coexist in harmony with the local
community and the natural environment.
3R: Reduce (reduce waste), Reuse (reuse products
and parts), Recycle (recycle materials)
OUTPUT
CO2 emissions
SOx emissions
CO2
SOx
1.087 million t-CO2
Japan 864,266 t-CO2
Overseas 222,635 t-CO2
Japan
6.4 tons
39
PFC emissions
NOx emissions
PFC
NOx
Japan
424,743 GWPt※2
Japan
113.8 tons
Drainage
Nitrogen discharged
Final landfill disposal
N
Japan
9.507 million m3
Japan
150.1 tons
COD (chemical oxygen demand) Phosphorous discharged
Sharp Environmental and Social Report 2005
Chemical substances (PRTR)
released and transferred
COD
P
Japan
22.3 tons
Japan
1.9 tons
Japan
219 tons
Japan
Released 13.7 tons
Transferred 149.2 tons
Recycled into new products, reused as new parts, closed-loop material recycling, etc.
Energy consumption
INPUT
RECYCLE
Energy consumption
25,784 TJ 1
Material recycling
※
Japan
Vehicle fuel
10,177 kl
Electricity
2,623 million kWh
※4
※5
Amount of used home appliances
(4 kinds) recycled into new home
appliances (4 kinds)
Japan 34,344 tons
Amount of recycled
copiers
Japan 1,830 tons
TVs
9,056 tons
Air conditioners
6,642 tons
Refrigerators
10,832 tons
Washing machines 7,814 tons
Amount reused as
new copier parts
Japan 34 tons
Amount of closed-loop
material recycling of
plastics※7
Amount of
recycled PCs
Japan 20.4 tons
Japan 420 tons
7 For details,
see page 42.
4 Estimate
※
※
Logistics
For product delivery, Sharp is doing its
best to switch from trucks to trains, which
place less burden on the environment,
and to introduce low-pollution vehicles
into its delivery force.
Sharp helps people live in harmony with
the natural environment by offering
photovoltaic power systems and energyand resource-saving products.
OUTPUT
CO2 emissions
CO2
Japan
26,697 t-CO2
Recycling
Product use
Total shipment weight
from the Logistics
Center
Japan
549,395 tons
Sharp is building recycling systems for
used products and developing recycling
technology that cooperates with product
design groups.
OUTPUT
OUTPUT
CO2 reductions
CO2 emissions
CO2
CO2
150,000 t-CO2※6
(337 million kWh)
1.14 million t-CO2※5
OUTPUT
Weight of which that was not
recycled into new products or
materials, or reused
Japan
11,648 tons
(four home appliances, PCs, copiers)
5 Estimate of annual energy used and amount of CO2 emitted by
products in the 14 major categories shipped in fiscal 2004.
Calculation based on each product’
s energy consumption rate.
※6 Amount of annual power generated (kWh) by Sharpʼs solar cells
shipped in 2004 and CO2 reductions (t-CO2).
※
Sharp Environmental and Social Report 2005
40
How Business Activities Relate to the Environment
INPUT
Other uses
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Developing Super Green Technologies
The development of superior environmental technologies is an essential factor in the environmental performance
of products and devices. That’s why Sharp is making a corporate-wide effort to develop “Super Green
Technologies”,* envisioning its highest-priority environmental technologies as “One-of-a-Kind Environmental
* See the paragraph below on details of what Sharp defines as “Super Green Technologies.”
Technologies.”
Objectives for Fiscal 2004
Achievements
Objectives for Fiscal 2005
Objectives for Fiscal 2007
● Develop closed-loop plastic material
420 tons of recycled plastics
used in new products
● Use 500 tons of recycled
plastics in new products
● Use 1,000 tons of recycled
plastics in new products
● Develop mass-production technology
Researched use of easy-release
fasteners in communications
equipment
● Use in communications equipment
● Use in audio/video equipment
● Develop LCD panel recycling technology
Guidelines set for recycling
LCD panels
● Develop recycling technology for
LCD TV cabinet materials
● Develop technology to recover
indium from LCD panels
● Eliminate all lead solder
● Eliminate all lead solder (in new
Eliminated all lead solder
(in new products for main markets)
products for all markets)
recycling technology; use 420 tons of
recycled plastics in new products
for easy-release fasteners; use in
communications equipment
(in new products for main markets)
Developing Super Green Technologies
Sharp classifies environmental technologies
into two categories: 1) technologies that contribute to global environmental conservation
and improvement of living environments, and
2) technologies that reduce the burden on the
environment. Category 1) is further divided
into two fields: improvement of core functions
and improvement of optional functions. Category 2) covers three fields: prevention of global
warming, reduction of chemical substances,
and effective use of resources. Sharp centers
its environmental activities on these five fields,
and it envisions the most important theme in
each field as a One-of-a-Kind Environmental
Technology and aggressively promoting its
further development.
■ One-of-a-kind technological development fields that give birth to
Super Green Technologies
Technologies that contribute to
global environmental conservation
and improvement of living environments
Technologies that reduce
environmental burden
CO2 emission reductions
Energy saving
Prevention of
global warming
Eliminate use of
harmful
substances
Reduction of
chemical
substances
Since fiscal 2003, Sharp has been working in
collaboration with NEC Tokin Corporation,
Union Seimitsu Co., Ltd., and Tokai University
in Japan on the development of mass production technology for parts that make it easy to
disassemble used products.
During fiscal 2004, this group implemented
cost reductions and improved the fastening
strength of parts developed during the previous
fiscal year for practical application in communications equipment. The resulting washers
employ TiNi* shape-memory alloy. As seen in
the illustration, the washer remains securely
fastened in use but expands when heated,
releasing the head of the screw and enabling
the two combined pieces to come apart easily.
One-of-a-Kind
Environmental
Technologies
Improvement
of optional
Health,
functions
cleanliness,
peace of mind
Reduce, reuse, recycle
■ TiNi shape-memory alloy washer
When in use
Shape-memory alloy
Washer
expands
When heat applied
When heat is applied, the shapememory alloy washer expands and
the screw comes loose
■ Principle of automatic disassembly with application of heat
The group will continue its research in mass
production technology over the coming year,
with plans to develop applications to home appliances in the future.
* TiNi: Alloy made of titanium and nickel
41
Improvement of
core functions
Effective use of resources
Unique technologies evolving from these developments, which contribute to environmental
conservation, are what Sharp calls Super Green
Technologies.
Developing Easy-Release
Technologies
New energy
Energy creation
Sharp Environmental and Social Report 2005
Cool
Heat
Disassembly
Used LCD TV
Developing Recycling Technology
for LCD Application Products
Development of Closed-Loop Plastic Material Recycling Technology
During fiscal 2004, Sharp developed the technology to modify the physical properties and
lifespan of recycled plastics, making it possible
to specify requirements for recycled parts or
materials. This led to a surge in the consumption of recycled plastics in Japan, from 270
tons last fiscal year to 420 tons this year. In
honor of this contribution to the establishment
of a recycling-oriented society, Sharp received
the Education, Culture, Sports, Science and
Technology Minister’s Prize at the 13th Global
Environment Awards*2 in Japan (April 2004).
Sharp was also winner of the 15th Best Technology Award*3 (June 2005) sponsored by the
Japan Society of Polymer Processing.
Continuing forward in fiscal 2005, Sharp plans
to boost consumption of recycled plastics to
500 tons and advance the development of
material recycling technologies for other types
of plastics, such as ABS resin and technologies
that allow the separation and sorting of mixed
plastics.
*1 Four home appliances: air conditioners, TVs, refrigerators
and washing machines.
*2 Sponsored by the Japan Industrial Journal, the awards
recognize businesses and municipalities that have made
active environmental conservation efforts toward the
harmonious coexistence of industry growth and the global
environment.
*3 This award, sponsored by the Japan Society of Polymer
Processing (JSPP), recognizes unique and superior
technologies that contribute to the advancement of plastic
processing.
■ Process flow diagram of plastic material recycling and practical examples
SJ-PV40J
refrigerator
❷
Fan motor holder
(made from
washtubs of
discarded washing
machines)
❸
Evaporator cover
(made from
washtubs of
discarded washing
machines)
New products
Product collection
Molding and assembly
of plastic parts
❷
Disassembly
Plastic parts
recovery
Product
design
❶
❸
Pelletization
❹
Condenser cover
(made from
balancers of
discarded washing
machines)
Material evaluation
Evaluation of remaining
lifespan
Moldability (flowability)
evaluation
Physical properties
evaluation
Review and determine
formulation to improve
properties
Mixing with additives
Sharp plans to continue to develop the basic
technologies needed for recycling LCD TVs,
such as the plastic material recycling for LCD
TV cabinets, to bring LCD TV recycling into
full practice in the immediate future in Japan.
Eliminating Lead Solder
Sharp introduced the Lead-Free Solder Introduction Guidelines in 2001, following with the
Lead-Free Solder Mounting Guidelines and the
Management Guidelines for Sn-3.0Ag-0.5Cu*1
Flow Solder Tank in 2003.
As a result of these efforts, Sharp succeeded
in completely eliminating lead solder in new
products for main markets*2 during fiscal 2004.
Placing
into crusher
*1 Sn-3.0Ag-0.5Cu: A standard lead-free solder used by
Sharp. Its composition is 96.5% tin (Sn), 3% silver (Ag) and
0.5% copper (Cu).
*2 New products released after April 2005 in North America,
Europe, China and Japan.
❹
Melting/extrusion
In fiscal 2003, Sharp established guidelines for
the safe removal of mercury backlights used
widely in LCD TVs and LCD panels and, soon
after, formulated guidelines for recycling LCD
panels in fiscal 2004.
In fiscal 2004, Sharp reviewed the Standard for
Control of Lead-Free Solder Composition and
introduced it at production sites in Japan and
overseas. Sharp also held training sessions on
mounting lead-free solder. A company-wide
conference was also held as a forum to enhance
the technical knowledge of its engineers and
share information about lead-free soldering
technology throughout the company.
Product use (user)
❶
Partition
(made from
vegetable cases
of discarded
refrigerators)
Aiming to develop recycling technology for
LCD TVs and other LCD applications, Sharp
has been working on a corporate-wide recycling technology project since fiscal 2003.
Cleaning
■ Developments in practical material recycling
Refirigerator
TV
Washing
machine
Used parts
Material
type
Technologies
Recycled
as
・ Adjust properties
・ Improve lifespan
Washing
machine tub
・ Adjust moldability
・ Adjust properties
・ Improve lifespan
Polypropyene
Rear
cabinet
Quantity of recycled material used (ton/year)
FY2001 FY2002 FY2003 FY2004 FY2005
(target)
40
80
190
Refrigerators
parts
—
—
—
・ Adjust moldability
・ Improve lifespan
Refrigerator
parts
—
—
Polypropyene
・ Sort nonincombustible PP
・ Improve lifespan
・ Improve heat
resistance
Air conditioner
parts
—
—
Refrigerators
parts
—
Vegetable
case
Polypropyene
・ Improve properties
・ Improve lifespan
Refrigerators
parts
Shelf plate
Polystyrene
・ Sort materials
・ Adjust physical
properties
・ Improve lifespan
Washtub
Polypropyene
Spin tub/
balancer
180
200
80
90
50
65
80
10
20
20
—
15
40
40
—
—
—
35
70
Refrigerators
parts
—
—
5
—
—
Total
40
80
270
420
500
Lead-Free Solder Mounting Guidelines
(Japanese, English and Chinese editions)
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Environmental technology
development examples
Sharp Environmental and Social Report 2005
42
Developing Super Green Technologies
In 1999, Sharp began working on the development of closed-loop plastic material recycling
technology that repeatedly recycles scrap
plastics from four types of home appliances*1
and reuses it as material to manufacture new
home appliance products. This process was
successfully put into practice in 2001 in Japan.
Continuing progress expanded the recycling
technology ever further. Sharp developed a
method for easily evaluating the lifespan of recycled plastics in May 2003, and followed with
the technology for dismantling scrap washing
machine tubs.
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Creating Super Green Products and Devices
To continually enhance the environmental performance of its products and devices, Sharp revises and upgrades
its original in-house guidelines each year to set stricter-than-ever standards for the development of Green
Products and Devices. Through these efforts, Sharp has increased the ratio of Green Seal Products* to total net
sales and brought more Super Green Products and Green Devices onto the market during fiscal 2004 in Japan.
Objectives for Fiscal 2004
● Green Seal Products* accounting
for 65% of net sales in Japan
● Super Green Products accounting for 10%
of net sales in Japan (2nd half-year)
● Green Devices accounting for
5% of net sales (2nd half-year)
Achievements
Objectives for Fiscal 2005
Green Seal Products accounted for
73.9% of net sales
Super Green Products accounted for
5.4% of net sales (2nd half-year)
Green Devices accounted for 23.9%
of net sales (2nd half-year)
Objectives for Fiscal 2007
● Green Seal Products accounting
for 80% of net sales in Japan
● Super Green Products accounting
for 20% of net sales in Japan
● Green Seal Products accounting for
90% of net sales in Japan
● Super Green Products accounting for
35% of net sales in Japan
● Green Devices accounting for
40% of net sales
● Super Green Devices accounting
for 5% of net sales
● Green Devices accounting for
75% of net sales
● Super Green Devices accounting
for 15% of net sales
* Green Seal Products are certified as such based on Sharp’s own certification standards.
Note: The sales ratios of Green Seal Products and Green Devices include both sales of Super Green Products and Super Green Devices.
Make All Products “Green Products”
Environmentally conscious products are what
Sharp calls “Green Products.” Aiming to make
all its products Green Products, Sharp formulated guidelines in December 1998, defining
specific design targets and design know-how
based on seven concepts. Sharp has introduced
these guidelines at all design and production
sites in Japan and overseas.
Since April 1998, Sharp has been certifying
products for Japan, which offer a particularly
high level of environmental performance, as
“Green Seal Products.” Since that time, the
volume of sales for certified Green Seal Products has increased along with Sharp’s certification standards, which are reviewed every year.
Development of Green Products
The first step in developing Green Products
is product planning, where Sharp applies its
Green Product Guidelines to design a product
that is environmentally enhanced in every
aspect. Next, in the design stage, Sharp sets
specific objectives based on the assessment
items of the Green Product Standard Sheet.
Finally, in the testing and mass production
stages, Sharp determines how well the actual
product has met the objectives set out for it.
In fiscal 2004, Green Products had to satisfy at
least 90% (85% for fiscal 2003) or more of 47
assessment items, a standard that was met by
all of Sharp’s new products.
■ Fiscal 2004 assessment and certification standards for
Green Seal Products and Super Green Products in Japan
Green Seal Products
Category
In fiscal 2004, Sharp introduced an even higher
standard of environmental performance for its
products, one that surpasses that of Green Seal
Products. This next stage in environmentally
conscious products, which exceed stricter-thanever in-house standards, is what Sharp calls the
“Super Green Products.”
Super Green Products
Required
items
・ Satisfies four required items of the
Environmental Performance Criteria
・ Satisfies four required items of the
Environmental Performance Criteria
・ Meets the RoHS directive
・ Has environmental label status
Level of
environmental consciousness
・ Satisfies at least one item of the
External Environmental Claim
Standards
・ Is significantly more environmentally
conscious than the products of other
companies
Prevents global warming Makes effective use of
At least 70 points
■ Sharp Green Product concept
Low energy
consumption
Safety
Resource
reduction
Recycle
Use recycled
materials
Long life
usability
Easy to
disassemble
43
Products that are energy-efficient and use little
energy
Design products that consume less power both in
running and standby mode, and air
conditioners/heaters that give more efficient cooling
and heating.
All conditions under sections ,
, and
Other
At least 90 points
must be satisfied.
■ The Sharp concept of environmentally
conscious products
■ Four required items of the Environmental
Performance Criteria in Japan
Items
Energy
saving
Products that are safe to use
Carry out tests on products for chemicals and work to
abolish or reduce use of chemicals that have negative
effects on people’s health or the environment.
Improved
Products that use minimum resources
Make products that use less water and detergent, and
reduce the amount of materials used in products and
packaging.
Super Green
Products
Green Seal Products
that are extremely
environmentally conscious
Recyclable products
Choose materials that can be easily recycled or reused
in products, and label the type of material used.
Products made from recycled materials
Use recycled plastic and reuse parts in making
products.
Uses substitutes
EnvironLow power consumption,
resources
for toxic chemicals Has environmental label
mental
Performance high energy efficiency, Designed for recyclability, Uses no heavy metals, status, uses minimum
etc. 20 points
resource saving,
uses lead-free solder, packaging materials,
Criteria
(total
etc. 20 points
etc. 35 points
etc. 25 points
score: 100)
Improved
Products with a long life cycle
Design products that are upgradeable and easy to
repair.
Products that are easy to disassemble
Design products so that they will be easy to
take apart for recycling.
Sharp Environmental and Social Report 2005
Detail
・ Less power consumption and standby power
consumption when compared to previous models
3R
・ Easy separation and disassembly
or is upgradeable
Safety
・ Uses lead-free solder in more than
one circuit board
・ Abolishes the use of polystyrene foam
(for products weighing less than 10 kg)
Packaging ・ Uses less plastics or packaging material
when compared to previous model
Green Seal Products
Green Products that offer
particularly high levels of
environmental performance
Green Products
Environmentally conscious products based on seven
concepts (judged by how well they meet the objectives of
the Green Product Standard Sheet)
Green Seal
(Sharpʼs own
environmental label)
Certification of Green Seal Products
and Super Green Products in Japan
The certification standard of Green Seal
Products is to satisfy all four required items
of the Environmental Performance Criteria, at
least one item of the External Environmental
Claim Standards, and score 70 points or higher
out of a total 100 points of the Environmental
Performance Criteria.
Even higher standards have been established
for the certification of Super Green Products,
where compliance with the EU RoHS directive* and acquisition of the Japanese Eco
Mark are essential. In addition, products must
score 90 points or higher in the Environmental
Performance Criteria to achieve Super Green
Product status.
During fiscal 2004, 188 models of Green Seal
Products accounted for over 73.9% of total net
sales in Japan, and 6 models of Super Green
Products such as LCD TVs and air purifiers
were created during the second half of the
year. In the coming years, Sharp plans to raise
those percentages even higher.
* RoHS: An EU directive on the “Restriction on the use of
certain Hazardous Substances.” RoHS prohibits the use of
lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether
(PBDE) in electrical and electronic equipment released in
the EU after July 1, 2006.
■ External Environmental Claim Standards
(Green Seal Products) in Japan
Resource savings during use
• Industry-leading model of each product category
(saving water and detergent, etc.)
Compact/lightweight
• Industry-leading model of each product category
• Reduced by 30% or more compared to previous
models
Recycled materials
• Use of recycled materials (material recycling)
Others
Eco
Mark
Safety
Energy saving,
energy creating
Detail
Power consumption
・ Industry-leading model of each product category
Standby power consumption
・ Industry-leading model of each product category
・ 0.1W or less (remote controlled products)
・ 1.0W or less (phones, faxes, PCs)
Energy creating
・ Industry-leading conversion efficiency
The 3Rs
Items
Green materials
• Abolishing use of halogen-based flame
retardants, substituting polyvinyl chloride
• Use of refrigerant with low global warming
potential
• Use of lead-free solder in all circuit boards
• Abolishing use of heavy metals (lead, mercury,
hexavalent chromium, cadmium)
Acquired Eco Mark
• Acquired Eco Mark authorized by the
Japan Environment Association
Original technology
• Sharp technology, the environmental consciousness of which can be evaluated objectively
The development of Green Devices begins at
the planning stage, where the environmental
consciousness of the product is discussed in
every aspect. Next, in the design stage, Sharp
sets specific objectives based on the assessment
items of the Green Device Standard Sheet.
Finally, in the prototype building and mass
production stages, Sharp determines how well
the actual product has met the objectives set
out for it.
In fiscal 2004, Green Devices had to satisfy at
least 90% or more of all 21 assessment items (9
of which are compulsory) listed in the Environmental Performance Criteria. As a result,
1,079 devices were certified as Green Devices
and accounted for over 23.9% of total net sales,
greatly exceeding the initial goal.
Starting from fiscal 2005, Sharp will develop
devices that have an even higher standard of
environmental performance, one that surpasses
even that of Green Devices. This is the next
stage up in environmentally conscious devices,
and they will be what Sharp calls “Super
Green Devices.”*
Promoting Green Procurement
In fiscal 2000, Sharp established the Green
Procurement Guidelines and began efforts to
enhance the environmental consciousness of
parts and materials at a supplier level. Under
these guidelines, Sharp evaluates the environmental approach of a supplier using two
assessment categories: the Assessment of Environmental Management and the Assessment of
Delivered Goods.
In fiscal 2003, Sharp formulated its “Survey
Manual for Chemical Substances in Parts and
Materials” and adopted a survey tool issued
by the Japan Green Procurement Survey
Standardization Initiative* to investigate on
chemical substance content as determined by
the Initiative (with formaldehyde added as
Sharp’s own survey substance). The company
also began taking measures toward eliminating
RoHS-designated substances. To confirm the
safety of parts and materials, particularly those
likely to be in contact with food, tableware and
human bodies, Sharp required its suppliers
to provide safety test results and the like for
evaluation.
* A council comprising 6 organizations and 85 companies,
mainly electronics manufacturers including Sharp Corporation, which works to standardize research on chemical
substances in parts and materials.
* Super Green Devices will have to satisfy at least 95% or
more of the 21 assessment items (10 of which are compulsory) listed in the Environmental Performance Criteria.
At the same time, they must be either the industry’s No.
1, or the industry’s first devices in at least one item of the
External Environmental Claim Standards.
■ The Green Device concept
Energy
saving
Reduce total power consumption
and reduce power consumed in
standby mode compared to previous
models
Recyclability
Use standard plastic or materials that
are easy to separate and disassemble
(target: LCD devices)
Resource
saving
Reduce device weight or volume
compared to previous models
Green
materials
Use no RoHS*-designated substances
or substances prohibited under Sharp
standards
Long life
Extend the life of the product with
exchangeable parts and consumables
(target: LCD devices)
Packaging
Information
disclosure
Reduce packaging materials
Provide information on chemical
substances in devices
Survey Manual for Chemical Substances
in Parts and Materials
(Japanese and English editions)
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■
■
■
■
Super Green Product examples
Green Device examples
Green procurement assessment items
Data on environmental label products
Sharp Environmental and Social Report 2005
44
Creating Super Green Products and Devices
In fiscal 2004, Sharp established the Environmental Performance Criteria as the new overall
assessment standard for certifying Super Green
Products.
Development and Certification of
Green Devices and Super Green
Devices
Environmentally conscious devices are what
Sharp calls “Green Devices.” To define the
standards and assessment method for their
development, Sharp established guidelines,
which it began introducing into all device
groups in April 2004.
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Achievement of a Super Green Factory
Sharp is taking concrete actions toward enhancing the environmental consciousness of its production sites all
over the world. Having established proprietary assessment standards to rank a factory with high environmental
consciousness as a Green Factory, and one with extremely high environmental consciousness as a Super Green
Factory, Sharp has set a medium-term objective of converting all its factories into Green Factories or higher by
fiscal 2007.
Objectives for Fiscal 2004
Sharp Corporation production sites
● Super Green Factory
● Green Factory
2
8
Subsidiaries and affiliated companies
● Green Factory
2
Overseas production sites (companies)
● Assess all 22 sites
Achievements
Objectives for Fiscal 2005
Sharp Corporation production sites
2
● Super Green Factory
8
● Green Factory
Subsidiaries and affiliated companies
● Green Factory
2
Overseas production sites (companies)
● Completed the assessment of all 22 sites
Upgrading All Plants to Green
Factories
At Sharp, for a factory to earn the title of
“Green Factory,” it must achieve a high level of
environmental consciousness. It must not only
reduce the environmental burden associated
with its production activities, but also try to
ensure complete harmony with nature and the
local community. Sharp formulated guidelines
defining the basic policies and operational
know-how for realizing a Green Factory based
on 10 concepts. These guidelines were introduced at all domestic production sites from
fiscal 1999 onward and at all overseas production sites from fiscal 2001 onward.
In fiscal 2003, Sharp drew up specific assessment criteria to evaluate environmental
performance and began assessments for inhouse certification. Sharp also set new criteria
for the certification of “Super Green Factories,”
which surpass those of Green Factories. Using
these measures, Sharp plans to improve the
environmental performance of all its production sites, with the goal of upgrading all Sharp
Corporation sites (currently 10 sites) to Super
Green Factories and all other Sharp Group
sites (currently 6 domestic and 22 overseas
sites) to Green Factories by fiscal 2007.
Objectives for Fiscal 2007
Sharp Corporation production sites
● Raise average improvement rate of
environmental performance by 11%
compared to FY2003
Subsidiaries and affiliated companies
● Green Factory
4
Overseas production sites (companies)
● Green Factory
4
● Upgrade all ten Sharp Corporation
production sites to Super Green
Factories
● Upgrade all other domestic and
overseas production sites
(companies) to Green Factories
Efforts Toward the Achievement of Super Green Factories
With regard to the construction of new factories,
environmental impact assessments are incorporated at the early planning stages to achieve
Super Green Factory status. This includes the
establishment of environmental conservation
measures that the plant must implement, as well
as the standards that must be maintained. Sharp
then carries out preliminary assessments exactly
as an outside party would.
Moreover, Sharp is continually improving environmental performance at its existing plants
to promote their step-by-step upgrade.
Super Green Factory. Then in fiscal 2004, the
Mie Plant became the first-ever existing plant
to upgrade to a Super Green Factory.
Other Sharp production sites have also been
endeavoring to improve environmental performance by focusing on release reductions
of chemical substances and the expansion of
waste utilization. These combined efforts have
improved the total environmental performance
of Sharp Corporation’s production sites by 9%
compared to fiscal 2003.
In fiscal 2003, the newly constructed Kameyama Plant was certified as the first-ever
■ The Green Factory concept
Greenhouse
gases
Minimize emission of
greenhouse gases
Minimize discharge of waste
Waste
Chemical
substances
Minimize risk of environmental
pollution and accidents caused by
chemical substances
Harmony
with nature
Endeavor to preserve nature
both on and off site
Environmental
consciousness
High environmental awareness
among employees
Energy
Resources
Atmosphere,
water, soil
Minimize energy
consumption
Minimize resource
consumption
Minimize environmental
burden on the atmosphere,
water and soil
Harmony with
the community
Encourage harmony
with the local community
Information
disclosure
Disclose information on
the environment
■ Process required to achieve Super Green Factories
New factories
Existing factories
Green Factory Concept
+
Approach based on environmental
impact assessments
Green Factory Guidelines
(Japanese and English editions)
The plant s environmental performance is
assessed from an objective third-party point
of view and performance is defined for each
item based on the assessment results.
Assessments based on 21 quantified environmental performance criteria
90 points or more
Super Green Factory
45
Sharp Environmental and Social Report 2005
Super Green Factory
70 points
or more
Green Factory
Certification of Green Factories and Super Green Factories
Environmental performance criteria
Reductions in
greenhouse gas
emissions
Assessment
weighting
・ Reductions in PFC
gases, etc.
・ Promotion of variable
supply control systems
・ Recovery and recycling
of waste heat
・ Introduction of a
cogeneration system
・ Introduction of highly
efficient equipment
・ Introduction of new
energy sources
・ Continued improvement
in CO2 emissions per
production unit
・ Implementation of
managerial decisionmaking standards
30%
Release
reductions
of chemical
substances
Appropriate
disposal of
industrial waste
・ PRTR* atmospheric
emissions
・ PRTR water emissions
・ Sulfoxide produced
by combustion
・ Measures against
various bad odors
・ Zero discharge to
landfill
・ Confirmation of
appropriate disposal
・ Convert waste to
valuable recycled
materials
26%
Reductions in the
consumption of
industrial water
Surveillance,
safety
and information
disclosure
・ Use of rain
condensation water
・ Recovery of
production rinse water
・ Disaster and fire
prevention measures
for hazardous materials
・ Special safety
measures
・ Adoption of central
surveillance measures
・ Disclosure of
environment-related
information
9%
21%
14%
Topics
The Kameyama Plant Receives Japan
Sustainable Management Award
* PRTR: Pollutant Release and Transfer Register
Topics
Mie Plant Becomes First Existing Factory to Achieve Super Green Status
Major efforts in upgrading to a Super Green Factory
■ Zero Discharge to Landfill
In April 2004, the Mie Plant achieved zero
discharge to landfill. It eliminated waste by
recycling at every step of the manufacturing
process, with measures that included introducing
a system to recycle 100% of the hydrofluoric acid
wastewater and using the gloves from the clean
rooms as roadbed material.
■ Photovoltaic Power System
The Mie Plant No. 3 installed a 1,246-m2, 180-kW
photovoltaic power system on its south exterior
wall. The system began generating electricity in
March 2005. Used mainly to provide lighting for all
non-manufacturing rooms, the system is expected
to contribute to the reduction of 50 tons of CO2
emissions a year.
■ Scrubber to Reduce Odors
Exhaust gas from manufacturing processes
contains chemical substances that cause air
pollution and foul odors if released into the
atmosphere directly. To reduce each of these
substances (acids, alkalis, isopropyl alcohol) and
thus control such releases, the Mie Plant installed
a scrubber.
In fiscal 2004, the plant also installed an
electrolysis device on a scrubber that absorbs
and eliminates acetic acid. This device causes
strong oxidation that breaks down the acetic acid
into water and carbon dioxide. The result is higher
performance for the scrubber.
Electrolysis
tank
Mie Plant No. 3
Exhaust from
manufacturing
processes
Electrolysis control
device tank
The Kameyama Plant in Japan
was recognized for its outstanding
environmental sustainability management
by being chosen from among 125
applicants for the highest honor,
the Sustainable Management Pearl
Award, in the 2004 Japan Sustainable
Management Awards* (sponsored by the
Japan Sustainable Management Awards
Committee and Mie Prefecture).
This award shows the high esteem for
the environmental measures—including
100% recycling of manufacturing process
wastewater, the introduction of an LNG
cogeneration system and the installation
of a photovoltaic power system—taken by
the Kameyama Plant, Sharp’s first Super
Green Factory.
The Kameyama Plant was also the
proud recipient of the grand prize at the
1st Nikkei Monozukuri Awards 2004,
sponsored by Nihon Keizai Shimbun, Inc.
For details, please refer to page 21.
Automatic electrolysis
solution supply system
Exhaust after removal of chemical substances
Electrolysis
solution tank
* The Japan Sustainable Management Awards honor
all organizations across the nation, no matter what
their size or type of business—including private
companies, NPOs and schools—that demonstrate
outstanding results of their environmental sustainability management efforts.
Chemical
tank
WEB
To wastewater yard
Reuse as re-supply water
Removal of chemical
substances
Assessment and approval are based on 21
quantified environmental performance criteria
grouped into five major categories: “reductions
in greenhouse gas emissions,” “release reductions of chemical substances,” “appropriate
disposal of industrial waste,” “reductions in the
consumption of industrial water,” and “surveillance, safety and information disclosure.”
After evaluation, a plant scoring 70 points or
more out of a possible 100 is certified as Green
Factory, and one scoring 90 points or more is
certified as Super Green Factory.
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Environmental efforts at the Mie Plant
■ Environmental efforts at the Kameyama Plant
Sharp Environmental and Social Report 2005
46
Achievement of a Super Green Factory
■ Twenty-one quantified environmental performance criteria and assessment weighting
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Reducing Greenhouse Gas Emissions
Sharp is taking active measures to control the greenhouse gas emissions resulting from its business activities. In
addition to reducing energy consumption through the introduction of cogeneration systems, energy-efficient
production equipment and photovoltaic power systems, Sharp is also reducing greenhouse gas emissions such as
PFCs*1 by installing scrubbers and using replacement gases with less greenhouse effect.
Objectives for Fiscal 2004
Achievements
CO2 emissions per production unit*2
● Japan:
-Product sites:
Reduce by 2% from previous
fiscal year
-Device sites:
Reduce by 5% from previous
fiscal year
Objectives for Fiscal 2005
CO2 emissions per production unit*2
● Japan
-Product sites:
Increased by 14% from previous
fiscal year
-Device sites:
Increased by 3% from previous
fiscal year
● Overseas:
Reduce by 2% from previous
fiscal year at production sites
(companies)
Mid- and Long-Term Objectives
CO2 emissions per production unit*2
● Japan:
-Product sites:
Reduce by 2% from previous
fiscal year
-Device sites:
Reduce by 5% from previous
fiscal year
● Overseas:
Reduced by 6% from previous
fiscal year at production sites
(companies)
Every fiscal year
CO2 emissions per production unit*2
● Japan:
-Product sites: Reduce by 2% from previous fiscal year
-Device sites: Reduce by 5% from previous fiscal year
● Overseas: Reduce by 2% from previous fiscal year
at production sites (companies)
Objectives for FY2010
CO2 emissions per real production unit*3
● Japan: All production sites: Reduce by
25% compared to FY1990
● Overseas:
Reduce by 2% from previous
fiscal year at production sites
(companies)
Domestic sites include only the business sites of Sharp Corporation. Overseas sites include Sharp subsidiaries and affiliated companies.
To reasonably evaluate the effect of controlling greenhouse gas emissions, Sharp adopts an index referred to as “per production unit.”
*2 Per production unit (t-CO 2 /100 million yen) = CO 2 emission (t-CO 2) ÷ production output (100 million yen)
*3 Per real production unit (t-CO 2 /100 million yen) = CO 2 emission (t-CO 2) ÷ production output (100 million yen) ÷ domestic corporate price
index (electrical equipment) determined by the Bank of Japan
Efforts by the Sharp Group
*1 A general term for perfluorocarbon gases such as CF4
(carbon tetrafluoride), C2F6 (carbon hexafluoride) and the
like, which are greenhouse gases.
Controlling CO2 Emissions
In fiscal 2004, the Sharp Group was able to
keep greenhouse gas emission increases to
4.7% compared to the previous fiscal year,
despite the Kameyama Plant starting full-scale
operations. Greenhouse gas emissions per production unit decreased by 8% compared to the
previous fiscal year. This is thanks to company-wide efforts to save energy and to greatly
reduce PFC emissions by installing scrubbers.
In future, the Sharp Group will work harder
toward achieving its corporate vision of “zero
global warming impact by 2010.”*
* For details, refer to pages 5, 12 or 32.
Controlling PFC Emissions
Sharp surpassed its goals for reducing CO2
emissions per production unit at overseas
manufacturing sites. At domestic manufacturing sites, although Sharp kept increases in
energy use to less than increases in production
volume, changes in the market resulted in large
decreases in shipped prices for manufactured
goods, and CO2 emissions per production unit
increased for both products and devices. Sharp
will, however, continue to work to reduce CO2
emissions through aggressive efforts including the introduction of cogeneration systems,
energy-efficient equipment and photovoltaic
power systems.
Sharp reduced emissions of greenhouse gases
like PFCs and SF6 by 23% from the previous
fiscal year through measures such as switching
to gases with lower global warming potential and introducing scrubbers to decompose
greenhouse gases.
For decomposing greenhouse gases, Sharp
adopted optimum treatment methods based on
the type or quantity of gases used, achieving
a decomposition efficiency rate of more than
90%. In addition, Sharp is taking an integrated
approach toward reducing environmental
burden, for example, by developing technology that recovers and reuses fluorine generated
during the gas decomposition process.
■ Sharp Group’s emissions of greenhouse gases and
per production unit
■ CO2 emissions per production unit by business
category for Sharp Corporation production sites in Japan
Emissions of greenhouse gases (t-CO2)
CO2 emissions (t-CO2)
1,800,000
84.9
82.9
1,415,398
1,364,065
633,428
1,000,000
740,672
1,443,922
61.3
1,205,638
1,200,000
90.0
550,280
1,511,644
424,743
56.6
222,635
557,853
800,000
80.0
70.0
60.0
200,000
0
483,801
2000
492,700
2001
613,391
2002
698,624
2003
864,266
2004
20.0
500,000
54.0
300,000
449,914
393,127
36.6
345,935
40.5
37.8
40.0
30.0
33.7
200,000
0
20.0
6.3
6.4
23,079
22,140
2000
2001
4.8
Emissions per production
unit of devices
3.7
22,555
23,507
2002
2003
CO2 emissions from product production
WEB
59.9
50.0
44.5
344,987
0
CO2 emissions
Emissions per
CO2 emissions
(domestic sites)
production unit
(overseas sites)
Per production unit is calculated from production-related emissions.
Sharp Environmental and Social Report 2005
60.0
58.0
100,000
(fiscal year)
632,941
600,000
10.0
PFC emissions
47
80.0
70.0
62.2
400,000
30.0
155,085
400,000
700,000
40.0
195,018
139,592
800,000
50.0
168,579
600,000
Per production unit
(t-CO2/100 million yen)
72.5
77.6
1,600,000
1,400,000
Per production unit
(t-CO2/100 million yen)
4.2
10.0
23,816
2004
0
(fiscal year)
CO2 emissions from device production
Sharp Corporation s
emissions per production unit
Emissions per
production unit of
products
Information posted on the Web site http://sharp-world.com/corporate/eco/report
■ Examples of reductions in greenhouse gases
■ Data on greenhouse gases
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Minimizing and Recycling Waste
Sharp has been working to bring down its total amount of waste generated and to recycle waste as much as
possible. As a result, Sharp’s domestic production sites (companies) as a whole have achieved zero discharge to
landfill*1 for four consecutive years. In the future, Sharp plans to enhance the recycling rate of valuable waste*2
domestically and reduce the amount of waste generated overseas. In addition, Sharp is focusing on recycling
wastewater and controlling the amount of water supplied.
● Overseas production sites (companies):
Reduce waste generated by 2% per production unit
from previous fiscal year
Achievements
● Domestic production sites
● Domestic production sites (companies):
(companies): Recycle 14% of waste into Recycle 16% of waste into valuable
materials
valuable materials
Reduced by 5% per
production unit from
previous fiscal year
*2 Valuable waste is waste, which may be sold as resources or recyclable materials.
Recycling rate of valuable waste = Quantity of valuable recycled waste ÷ total quantity
of waste generated × 100
Zero Discharge to Landfill*1 in Japan for Four Years in a Row
In particular, the Kameyama and Mie sites
achieved landfill disposals of absolute zero.
Since it began production, the Kameyama Plant
has employed a system for the complete recycling and reuse of all waste. The Mie site too,
achieved zero discharge to landfill by finally
being able to develop a method for recycling
clean room gloves into roadbed materials. As
■ Amount of waste generated from
Sharp Group
(tons)
well, Sharp was able to recycle 11% of all generated waste into valuable materials in fiscal
2004. At the same time, overseas production
sites reduced waste generation per production
unit by 5% compared to the previous fiscal
year.
Sharp aims to further reduce the amount of
landfill disposal and improve the recycling
rate of valuable waste. To do so, Sharp will
minimize the generation of waste, thoroughly
separate and recover recyclable waste, and
pursue recycling through the development of
intermediate treatment technologies. Furthermore, to ensure proper management and disposal of industrial waste, Sharp will introduce
databased manifesto management systems into
all domestic production sites by fiscal 2006.
■ Amount of waste and landfill disposal
rates from production sites (companies)
in Japan
241,107
2.00
204,987
200,000
31,552
190,056
29,046
157,311
150,000
102,031
150,000
209,555
107,295(A)
1.20
0.80
96,837(D)
63,001
0.40
2003
Japan
20,000
15,000
10,000
0
5,000
2004
2004
(fiscal year)
(1000 m3)
21,591
(E)
(fiscal year)
Intermediate in-house treatment (A)
Recycled (D)
External intermediate treatment (B)
Recycled waste processed
Landfill disposal (C)
into
valuable
materials (E)
Landfill disposal rate
Information posted on the Web site http://sharp-world.com/corporate/eco/report
■ Examples of reductions in the discharge of waste
■ Data on waste
■ Examples of effective water use
■ Data on water usage
2002
■ Amount of water supplied, wastewater,
and recovered and recycled water at all
production sites (companies) in Japan
0.02
Figures include domestic subsidiaries and affiliated companies
as of FY2004. Sharp began calculating the amount of waste
processed into valuable materials from FY2004.
WEB
0
0
2002
2003
9,291
2003
13,254
14,462
2002
12,126
5,000
13,038
0
11,896
10,000
10,717
10,121
Japan
2004
(fiscal year)
2,230
Overseas
40(C)
0.05
13,792
1,666
6,466
Overseas
2003
1,345
86
13,364
1,468
11,621
53,489
0.06
2002
15,484
15,000
8,532
0
1.60
814(B)
1,701
91
50,000
50,000
20,000
11,474
175,334
107,534
100,000
100,000
161,010
■ Amount of water used by Sharp Group
(1000 m3)
171,964
202,486
27,152
In Japan, Sharp collects the water used in
manufacturing processes and recycles it using
advanced wastewater purification technologies.
The Mie and Kameyama sites, in particular, recover and recycle all wastewater generated during production. In fiscal 2004, the Kameyama
site began full-scale operations, bringing with
it a substantial increase in the amount of water
recovered and recycled compared to the previous fiscal year. Sharp will continue its efforts
toward the effective use of water resources into
the future.
Landfill disposal rate (%)
250,000
250,000
200,000
Recycling of Water
(tons)
300,000
Every fiscal year
● Overseas production sites (companies):
Reduce waste generated by 2% per
production unit from previous fiscal year
● Overseas production sites (companies):
Reduce waste generated by 2% per
production unit from previous fiscal year
*1 Sharp defines “zero discharge to landfill” as reducing the amount of landfill disposal as close to zero as
possible. Specifically, zero discharge to landfill is considered to have been achieved when the final landfill
disposal rate (amount of landfill disposal ÷ total waste generated × 100) is less than 0.5%.
The total amount of waste generated by the
Sharp Group in fiscal 2004 increased by 19%
compared to the previous fiscal year with the
startup of full-scale operations at the Kameyama Plant. However, Sharp’s thorough recycling
of waste brought the final landfill disposal rate
in fiscal 2004 down to 0.02%, making it four
years in a row that Sharp has achieved zero
discharge to landfill at its domestic production
sites (companies) as a whole.
Objectives for Fiscal 2007
Objectives for Fiscal 2005
Recycled 11% of waste
into valuable materials
2004
(fiscal year)
Water supplied
Wastewater
Recovered and recycled water
Figures include domestic subsidiaries and affiliated
companies as of FY2004.
Sharp Environmental and Social Report 2005
48
Reducing Greenhouse Gas Emissions/Minimizing and Recycling Waste
Objectives for Fiscal 2004
● Domestic production sites (companies):
Recycle 12% of waste into valuable materials
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Appropriate Management and Reductions in the
Discharge Risk of Chemical Substances
Sharp achieves unified control and management of all chemical substances used through its chemical substances
management system (S-CMS*1). Sharp also defines 460 chemical substance groups under high-priority control,
including 354 substance groups specified under the PRTR*2 Law and 106 additional substance groups such
as hazardous air pollutants. Sharp evaluates the health risks associated with each substance for its proper
management and implements systematic reductions in its discharge.
Objectives for Fiscal 2004
*3
● Reduce discharge risk by
20% compared to FY2003
at Sharp Corporation
production sites in Japan
Achievements
Objectives for Fiscal 2005
● Reduced by 30%
compared to FY2003
Objectives for Fiscal 2007
● Reduce discharge risk by 30% or more
● Reduce discharge risk by 50% or more
compared to FY2003 at Sharp Corporation
production sites in Japan
compared to FY2003 at Sharp
Corporation production sites in Japan
*1 S-CMS: Sharp Chemical Management System *2 PRTR: Pollutant Release and Transfer Register. A system to collect and publicize data, such as the amount of harmful chemicals handled and discharged. *3 Discharge risk: Sum total of all numerical values assigned to each chemical substance released into the atmosphere. Values are calculated based on: Discharged amount (concentration at
site boundary) X risk to human health coefficient
Promotion of Risk Management in
Japan
To ensure centralized management of chemical substances at all sites, Sharp developed
the Sharp Chemical Management System
(S-CMS), which it began introducing at all domestic production sites in fiscal 2000. S-CMS
enables total management of all chemicals
used by classifying them in categories such as
production site, type of chemicals used in each
country, amount, constituents, the degree of
harmfulness, and related laws and regulations.
Sharp’s approach to managing the level of risk
associated with the discharge of chemical substances is to evaluate it from a human health
point of view. Sharp measures the impact of
chemicals on human health at site boundaries
based on Sharp’s management standard value
(one thousandth of the TLV*) assigned to each
substance, and makes efforts to reduce risks.
For chemical substances that Sharp has placed
under high-priority control (460 chemical substance groups, including 354 substance groups
specified under the PRTR Law and 106 additional ones such as hazardous air pollutants),
Sharp is reducing discharge risks by promoting
a preferential reduction in substances that have
a greater impact on human health.
In fiscal 2001, Sharp established a global version of the system, and in fiscal 2002, began
introducing it into overseas production sites.
By fiscal 2004, all 10 of Sharp’s domestic production sites and 15 of its 22 overseas production sites were operating under the system.
Because strict management of chemical substances is an essential requirement in establishing Green Factories, Sharp is planning to
introduce S-CMS at all its production sites,
including those overseas.
In fiscal 2004, Sharp achieved a 30% reduction in discharge risks compared to fiscal 2003
by improving treatment facilities at domestic
production sites.
In coordination with plans to expand production in fiscal 2005, Sharp will also take
additional measures to reduce the discharge of
chemical substances by installing more scrubbers, improving processes and using alternative substances. These efforts will help Sharp
achieve a 50% or more reduction in discharge
risks compared to fiscal 2003 by fiscal 2007.
Of the 354 chemical substance groups covered
by the PRTR Law in fiscal 2004, the number
of chemicals handled in quantities greater
than 500 kg annually at all Sharp Corporation
production sites was 17 substance groups (17
substances for the previous fiscal year), and the
handling of these substances totaled 4,089 tons
(up 5% compared to the previous fiscal year).
Although the use of PRTR chemicals increased
with the launch of full-scale production at the
Kameyama Plant, and there was a production
increase at the Katsuragi (formerly Shinjo) site,
Sharp reduced emissions by 33% compared to
the previous fiscal year. This was achieved by
thoroughly treating harmful substances and
recycling, as well as by substituting phenols
and 2-Ethoxyethyl acetate. Sharp will continue
its efforts to reduce the amount handled and
emitted in the future.
■ Destinations of PRTR-covered
chemical substances in Japan
Discharge into
atmosphere (0.1%)
Transfer to
sewers (0.1%)
Measure to reduce emissions of chemical substances
Plant exhaust gas purification system (Kameyama Plant, Japan)
Treatment method of exhaust gas containing water-soluble organic, acidic and alkali chemicals
The exhaust gas generated in the production
process contains chemical components,
which are removed to reduce the emission of
chemicals into the atmosphere.
The chemical components
are absorbed for removal
after being sprayed from
above by a water pump
Water supplied is
equivalent to the amount
drained
Exhaust containing chemicals
is collected from the production
equipment
Water
P
Water containing chemicals
is treated in the drainage
facilities
Sharp Environmental and Social Report 2005
Transfer to waste (3.6%)
Consumption (1.0%)
Recycle (79.6%)
■ Chemical substances discharged into
the atmosphere and water areas in
large amounts in Japan
Main
chemical
substances
Exhaust that is free of
chemical components
Discharge to water
areas (0.2%)
Treatment
(15.4%)
* Threshold limit value: The allowable concentration of airborne
chemical substances in working environments, as stipulated
by the American Conference of Industrial Hygienists
Example
49
Eliminating PRTR Substances in
Japan
Amount of
release
(tons) in
FY2004
Proportion
(%)
Hydrogen fluoride & its
water-soluble salts
9.3
68.1
2-Aminoethanol
1.9
14.0
2-Ethoxyethyl acetate
1.0
7.0
Xylene
0.5
3.8
Phenol
0.5
3.4
1,3,5-Trimethylbenzene
0.4
3.0
Others
0.1
0.7
WEB
Destination
Amount of
release (tons)
in FY2003
(reference)
Water
areas
12.1
The atmosphere
Introduction of a Unique Chemical
Management System
2.1
2.7
0.6
2.3
0.6
0.2
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Data on chemical substance management
■ Data on the atmosphere and water quality
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Promoting Risk Management
Sharp is working to prevent accidents by strengthening safety measures for hazardous articles and harmful
chemical substances. At the same time, Sharp is aiming to develop better relationships with the local community
and actively promoting risk communication. Examples are the exhibition of environmental information at Sharp
Festivals and the appointment of ”Risk Communicators”at each domestic site.
Ensuring the safe management of hazardous
articles and harmful chemical substances,
Sharp implements numerous safety measures
in business activities ranging from R&D to
production as “special safety management.”
In special safety management, risk assessment
audits are mandatory in the introductory stage
for hazardous articles and harmful chemical
substances, as well as in the installation stage
of handling equipment. By carrying out risk
assessment audits to investigate, evaluate and
predict risks and hazards from the two viewpoints of preventing accidents, disasters and
health hazards, and reducing environmental
burden, Sharp is able to reduce and remove
Progress in the Purification of Soil
and Groundwater in Japan
these risks to the greatest extent possible. In
addition to regular maintenance and inspections that ensure facility safety, Sharp implements extra safety control measures in line
with its fault tolerance and fail-safe* principles.
A survey conducted in 1998 on soil and
groundwater identified chlorine solvent pollution within the Nara, Yao, Tenri and Katsuragi
sites, all locations where today Sharp’s soil and
ground water purification treatments are well
underway.
To support and enhance safety measures,
Sharp has appointed a Special Safety Management Committee at each site. In preparation for
the possibility of an emergency situation, the
committee conducts training, safety education
programs and audits on the use of hazardous
articles and harmful chemical substances.
At the Yao site, chemicals such as trichloroethylene have now been reduced to levels lower
than the environmental standard; however,
Sharp is continuing purification of the district.
Since fiscal 2003, the Tenri and Katsuragi
(formerly Shinjo) sites have been conducting
purification measures with biotechnology,
which has lowered the concentrations of harmful substances.
* Fail-safe: Design principle for predicting the occurrence of
faults such as failures, faulty operation or defects in design,
as a way of minimizing damage should such faults occur.
■ Management of hazardous articles and harmful chemical substances
Risk assessment audits conducted prior to using chemical substances
Risk assessments for chemical
substances
・ Assessments related to “occupational safety
and health,” such as acute toxicity, corrosive
qualities and skin irritant qualities
・ Assessments related to “hazards and
explosions,” such as explosive qualities,
combustibility and spontaneous combustion
・ Assessments related to “environmental
conservation,” such as resistance to
decomposition, accumulation and chronic
toxicity
Improvement of operation and
employee skills
・ Safety education and emergency training
Safe design for facilities
・ Prevention of accidents and disaster expansion
through fault tolerance
・ Prevention of the spread of abnormal events
and progression to accidents through a 24-hour
automatic surveillance system
・ Prevention of the spread of effects to
surrounding areas through the employment of
containment procedures and detoxification
processing for chemical substances
All sites regularly notify local municipalities and residents of the cleanup progress and
measures being taken to prevent soil pollution.
The use of the chorine solvents, which was the
cause of this type of pollution, was completely
abolished in September 1999.
■ Progress in cleaning up soil and
groundwater
Site
Cleanup status for fiscal 2004
Nara site
・ Since October 1999, Sharp has conducted
operations to prevent off-site pollution and purify
polluted soil. Sharp is also studying ways to
speed up the process to complete cleanup at the
earliest possible date.
・ Sharp informs and confirms its progress with
local resident associations and government
authorities every year.
Yao site
・ As of September 1999, cleanup was completed
in two of the three areas involved, and Sharp
continues to periodically monitor the areas.
Steady progress is being made in the remaining
area, where Sharp was able to reduce chemicals
such as trichloroethylene to levels even lower
than the environmental standard; however,
Sharp is continuing purification of the district.
・ Periodic on-site inspections of the cleanup
process are held for local authorities.
Tenri and
Katsuragi
sites
・ Pollution was minor at both sites, but Sharp still
performs periodic monitoring of groundwater and
provides reports to local resident associations.
・ Sharp uses biotechnology, which employs
microorganisms to achieve results better than
those set by the ordinary environmental
standards.
Management after introduction of
chemical substances
• Inspection, investigation and maintenance
• Audits conducted by the Special Safety
Management Committee
Ensuring safe management of hazardous articles and harmful chemical substances
Positive Promotion of Risk Communication in Japan
Sharp’s domestic sites are promoting risk communication activities as a means of enhancing
mutual understanding with residents living
in the vicinity of Sharp sites. Efforts include
exchanging opinions and providing information on conditions, such as effluents, exhaust
gases, noise and vibrations, which may arise
from business activities.
Since fiscal 2002, Sharp has assigned “Risk
Communicator” posts at each domestic site,
with the number totaling 21 in fiscal 2004. All
Risk Communicators make an effort to share
and upgrade their information by holding
training based on Sharp’s “Risk Communication Manual.”
Each domestic site also disclosed information
with environment information panels at events
such as Sharp Festivals and by speaking at
municipality-sponsored seminars on Sharp’s
environmental preservation efforts. In addition,
the Nara and Yao sites hold information meetings every April with local government and
resident associations to explain the company’s
progress and efforts related to purification
measures for soil and groundwater pollution.
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Examples of risk communication activities
Sharp Environmental and Social Report 2005
50
Appropriate Management and Reductions in the Discharge Risk of Chemical Substances/Promoting Risk Management
Strict Implementation of Special Safety Measures for Hazardous Articles and
Harmful Chemical Substances
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Environmentally Conscious Logistics and Packaging
Sharp is working to reduce the environmental burden associated with distribution in Japan by shifting
transportation modes from trucks to railway. It is also introducing low-pollution company vehicles and is
encouraging drivers to drive in an environmentally conscious manner. The company is also trying to recycle and
reuse packaging and cushioning materials used during product transportation as much as possible.
Objectives for Fiscal 2004
Achievements
Objectives for Fiscal 2005
Objectives for Fiscal 2007
● Domestic railway cargo
● Domestic railway cargo transport
● Domestic railway cargo transport
● Domestic railway cargo transport
● Reduce 3,000 t-CO2 of CO2 emissions
● Reduced 3,170 t-CO2 of CO2 emissions
● Reduce 3,500 t-CO2 of CO2 emissions
● Reduce 4,000 t-CO2 of CO2 emissions
transport (container transport):
625 containers/month
in Japan
(container transport):
770 containers/month
(container transport):
900 containers/month
in Japan
in Japan
In fiscal 2004, Sharp made an average of 770
railway transport trips a month. This resulted
in CO2 emission reductions of 3,170 tons per
year (a 20% greater reduction than the previous
fiscal year), equivalent to the amount absorbed
by a forest approximately 37 times the area of
the Tokyo Dome*. As a result of these efforts,
transportation by railway as a percentage of
total transportation volume reached 14%.
In fiscal 2005, Sharp is planning to raise domestic railway transportation volume to 16% of
total transportation volume in Japan. This will
be achieved by accelerating the transportation
shift from truck to railway, including domestic
transport for import and export of cargo. In
addition, Sharp is looking into changing from
air transport for import and export of cargo to
a new means, high-speed vessels.
■ Railway container shipments
and CO2 reduction in Japan
(t-CO2)
4,200
Rail container units/month
1,050
Target
3,500
900
3,600
3,170
750
3,000
2,634
900
600
2,400
770
450
300
1,568
1,800
577
1,203
1,200
311
255
150
0
2001
600
2002
Rail container units
2003
2004
in Japan
Improvements in Load Efficiency,
Expansion of Direct-from-Factory
Shipments, and Introduction of LowPollution Trucks
Changing Modes of Transport
Sharp is shifting from transportation by truck
to transportation by more environmentally
friendly means in Japan; for example, by
railway, which emits just one-eighth the CO2
compared to trucks.
(container transport):
1,100 containers/month
2005
0
(fiscal year)
CO2 reduction volume
The total domestic transportation volume in
fiscal 2004 was 170 million txkm, 13% more
than the previous fiscal year. This increase in
volume was due to the increase in the amount
of products handled, including expanded production of LCD TVs at the Kameyama Plant.
To reduce transportation volume even as the
amount of products to be transported increases, it is necessary to seek higher efficiency in
distribution. In fiscal 2005, Sharp’s policy is
to reduce the total transportation volume by
improving the load efficiency using mixed load
transportation, and by expanding direct delivery to/from factories without going through
distribution centers.
To meet the Japanese laws and regulations
related to transportation by truck, such as
the NOx-PM Law and regulations on dieselpowered vehicles, Sharp is urging its shipping
contractors to introduce low-pollution vehicles,
since Sharp does not have its own trucks.
* Calculation based on the assumption that 1 ha of cedar forest absorbs 18 tons of CO 2 per year.
Shift from transportation by air to transportation
by high-speed vessels
Loading a railway container
Low-pollution truck
Example
SEC in Environmentally Conscious Distribution Initiative (United States)
Since 2004, Sharp’s US sales subsidiary (SEC) has been
participating in the Smart Way Transport Partnership, an
initiative of the Environmental Protection Agency (EPA),
transport companies and shipper companies to promote
efficient, environmentally conscious distribution of goods.
Through this partnership, SEC delivers products by
preferentially using Smart Way transport companies that
51
Sharp Environmental and Social Report 2005
strive to reduce burden on the environment as
well as by shifting from truck transport to the more
environmentally friendly rail transport.
Within SEC sites, the company is urging drivers
to turn off their engines when stopped by putting
up “No idle” posters and by educating employees
about the environmental benefits of such efforts.
SEC poster urging drivers to turn off engines
and reduce exhaust gas
Introducing Low-Pollution Company
Vehicles
Designing Easy-to-Recycle
Containers and Packaging Materials
Sharp is aiming to replace all business vehicles
in Japan, including cars for sales activities,
with low-emission-approved vehicles by fiscal
2010. Sharp introduced 615 low-emissionapproved vehicles and put 44 diesel-powered
vehicles out of service in fiscal 2004 based on
the following principles: 1) replace old company vehicles with low-emission-approved vehicles, 2) shift from diesel-powered vehicles to
gasoline vehicles, and 3) replace older vehicles
and vehicles with high mileage. As a result,
the number of low-emission-approved vehicles
used by the Sharp Group in Japan accounted
for 66.5% of all 3,900 company vehicles.
Sharp is striving to reduce the amount of secondary materials used mostly for distribution
in Japan; materials which are used to protect
products and to prevent cargos from falling
over or collapsing.
Sharp makes an effort to use packaging materials made of paper such as corrugated cardboard, which is easy to be disposed of and has
a high recycling rate in Japan. They are mainly
used for packages for small article products*
and can be disposed of as general domestic
waste in most cases. To make it easier to dispose of corrugated cardboard from the home
as recyclable materials, Sharp has developed
packaging that can be easily collapsed to a
small size and is working to put this packaging
into practical use as soon as possible.
Sharp has also been pushing environmentally
conscious driving* (“Eco Driving”) companywide since fiscal 2004 and working to enhance
individual environmental awareness and driving manners. As an example, Sharp has been
putting “Eco Driver” stickers on company
vehicles as well as preparing and distributing
the “Eco Driving Guide,” which outlines how
to drive in an environmentally conscious manner and how it can benefit everyone.
In addition, the Kameyama Logistics Center
introduced reusable bands for preventing the
collapse of cargos. These bands can be used in
place of stretch film.
Sharp’s Nishinihon Logistics Center has built
a system that generates no waste by asking
cooperative companies to process used stretch
film*, so that it can be used over and over again
as remanufactured film. This approach has
allowed Sharp to reduce the amount of landfill
disposal by about 100 tons in total in fiscal
2004 (3.8 times more compared to the previous
year).
* Made of polyethylene, stretch film is used for wrapping
stacked products in order to protect them from dust and
water and to prevent collapse of cargos.
* Products with a weight less than 10 kg. However, this does
not apply to seasonal and other products that require storage.
■ Amount of packaging materials used in
Japan
(tons)
25,000
619
119
625
133
20,000 1,199
1,162
673
410
555
95
1,121
1,166
* To drive in a manner that ensures minimum exhaust emission
from vehicles.
535
97
1,087
1,153
15,000
10,000
18,336
18,244
15,444
2001
2002
2003
14,825
Stretch film to be reprocessed
5,000
0
Corrugated cardboard
Polystyrene foam
Other material (wood)
“Eco Driver” sticker
Other paper
2004
(fiscal year)
Other plastics
Reusable band to prevent cargos from collapsing
Sharp Wins in the Electrical Appliance Packaging Category at the Japan Packaging Contest
Sharp was awarded a prize in the category of electrical
appliance packaging in the 2004 Japan Packaging
Contest (sponsored by the Japan Packaging Institute)
for its easy-to-collapse and easy-to-collect packaging.
Developed in 2003, this packaging is now used for MD
component systems and MD radio cassette players.
The high recycling efficiency and universal design of
the packaging, which can be safely folded to a small
size by following the directions on the package, were
highly evaluated by the contest judges.
Packages collapsible to a very small size for
easy collection
Eco Driving Guide
Sharp Environmental and Social Report 2005
52
Environmentally Conscious Logistics and Packaging
Reusing and Recycling Secondary
Distribution Materials
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Recycling Used Products
To contribute to the construction of a recycling-oriented society, Sharp is taking the lead in the recovery and
recycling of used products. The building of recycling systems is moving along in countries around the world,
particularly in Europe, where recovery and recycling of electrical and electronic equipment will be mandatory
starting in August 2005.
Objectives for Fiscal 2004
Achievements
Objectives for Fiscal 2005
● Participated in building recycling systems
鉄道貨物輸送(コンテナ輸送)
in European countries. In Germany, jointly
730本/月
● Build collection/
recycling system in
EU countries
● Begin smooth operation of
established a unique recycling scheme called
ProReturn with Loewe and Philips.
Sharp’s Recycling Concept
Sharp is engaged in the recycling of various
used products based on three concepts: 1)
improve the recycling rate and aim for zero
landfill disposal, 2) improve the efficiency of
the recycling system to reduce recycling costs,
and 3) incorporate recycling technologies into
the development and design of products.
The Japanese Home Appliances Recycling Law
was enacted in April 2001, making it mandatory for manufacturers to recycle four types of
home appliances (air conditioners, televisions,
refrigerators and washing machines). Freezers
were added to the list in 2004. The Japanese
Law for Promotion of Effective Utilization of
Resources made the collection and recycling of
business-use PCs mandatory in April 2001. In
October 2003, this law was amended, making
it mandatory to collect and recycle home-use
PCs.
Sharp is not only committed to the reliable recycling of these legally required items, but also
to enhancing the use of resources and reducing
waste in products other than those covered by
the laws. To that end, the company is engaged
in reuse and recycling efforts for copiers.
recycling system in Europe
Recycling of Four Kinds of Home
Appliances (Air Conditioners, TVs,
Refrigerators and Washing Machines)
Sharp is constructing a highly efficient recycling system by collaborating with five other
consumer electronics companies* to establish
and operate 190 designated sites for picking
up old appliances and 16 sites for recycling in
Japan.
In fiscal 2004, about 1.25 million units of the
appliances (up 7.1% over the previous year)
were recovered and recycled in total. The
increase in the amount of appliances recovered is likely due to new purchases of air
conditioners because of a summer heat wave
and to an increased awareness by consumers
about the importance of recycling appliances.
The processing rates in the recycling plants
satisfied the legal standard for all four kinds of
appliances. In future, Sharp will improve the
system in response to changes in conditions,
such as an increase in the amount of products
disposed of, and will work to further improve
the processing rate.
Kansai Recycle Systems Corporation, a Sharpaffiliated recycling company, holds recycling
design seminars aimed at providing product
design engineers with feedback from the recycling plant on how to design easy-to-recycle
products.
Objectives for Fiscal 2007
● Efficient operation of recycling systems
Recycling of PCs
To collect discarded home-use PCs from
customers in Japan, Sharp established the PC
Recycling Center. Customers can contact the
Web site or telephone the center to request
disposal. As well, the PC industry is working
with Japan Post in a PC recovery system using
special parcel packages called “Eco-Yu Packs”
available at more than 20,000 post offices
around Japan. This system offers convenient
and nationally standardized service by which
people can take used PCs to post offices or
have them picked up at their homes (free of
charge). In fiscal 2004, approximately 3,400
PCs (notebook, desktop) and monitors were
recovered and recycled through this system.
Meanwhile, Sharp is designated by the Japanese Ministry of the Environment as a “widearea recycled industrial waste processor*”,
and has constructed its own recovery system to
collect and recycle used business-use PCs.
* As an exception to the Japanese disposal/cleaning laws,
manufacturers that have been designated as “wide-area
recycled industrial waste processor” can collect and process
industrial waste on a nation-wide basis from their manufactured and processed products for the purpose of recycling.
* Five companies: Fujitsu General Ltd., Hitachi Living Systems,
Ltd., Mitsubishi Electric Corporation, Sanyo Electric Co., Ltd.,
Sony Corporation (in alphabetical order)
■ Sharp Corporation’s recycling component ratio of materials for the four home appliances in
Japan (fiscal 2004)
■ Recycling concept
Incorporate recycling
Develop recycling technology into the
design and
technology
Others
5%
development of new
products
Raise efficiency
Construct a highly
efficient recycling system
Increase
recycling rates
Air
conditioners
Steel
30%
Aluminum
1%
Nonferrous metal and
steel compounds 23%
Plastics*
4%
Others
12%
Refrigerators
TVs
Copper
Nonferrous metal
7%
and steel
compounds
57%
Aim for zero landfill disposal
by improving recycling rates
Nonferrous metal and
steel compounds 22%
Nonferrous metal and
steel compounds 1%
Copper 5%
Plastics*
Steel
1%
Others 8%
13%
CRT glass
72%
Aluminum
1%
Copper
1%
Others
13%
Washing
machines
Steel
64%
Aluminum
1%
* Only plastics closed-loop recycled into Sharp products (other plastics are included in “Others”)
53
Sharp Environmental and Social Report 2005
Copper
2%
Steel
57%
Recycling of Copiers
In fiscal 2004, about 22,800 copiers (68% more
than the previous fiscal year) were recovered. A
portion of the collected copiers is then remanufactured: copiers are given status testing, disassembled into parts, cleaned and tested before
being put back into the production line. New
parts are also added to produce copiers with a
guarantee of performance and quality equal to
new products. In fiscal 2004, Sharp shipped 818
of these (down 46% from the previous fiscal
year) remanufactured copiers.
As with the main unit of copiers, Sharp is
working to recover and recycle used toner
cartridges across the country. In fiscal 2004,
approximately 351,000 toner cartridges (43%
more than the previous fiscal year) were recovered, and about 243,000 of these (57% more
than the previous fiscal year) were remanufactured and shipped.
Those copiers and toner cartridges that could
not be remanufactured were disassembled
manually and sorted so that their materials
could be recycled.
Recycling of Portable Rechargeable
Batteries
Sharp established collection stations at sites
and repair centers around Japan. These stations
collect and recycle nickel cadmium batteries,
nickel-metal-hydride batteries, lithium-ion batteries, and some small-sized sealed lead-acid
batteries.
Presently, industry associations and other
organizations in each EU member state are
constructing collective recycling systems, with
Sharp’s local subsidiaries participating in this
construction.
In Germany, Sharp’s sales subsidiary (SEEG),
Loewe AG and Philips Consumer Electronics
have established ProReturn, a recovery and
recycling cooperation for waste electrical and
electronic equipment. ProReturn is constructing a high-efficiency system maximizing
economy of scale based on cooperative management.
United States
Sharp’s US sales subsidiary (SEC) has been
participating in “Plug-In To eCycling,” a recycling program that the Environmental Protection Agency has been promoting in various
regions in the US since 2002.
In 2004, SEC supported more than 130
recycling events and achieved recovery and recycling of about 1,200 tons of used home appliances across America. In recognition of such
efforts, SEC and its partners were honored by
the Environmental Protection Agency at the
Consumer Electronics Show in January 2005.
SEC continues to be a participating partner in
this program.
■ Recycling system in Germany
End users
Sort and dispose
of old appliances
SEC employee receiving an award from the Environmental
Protection Agency
Collection stations
(maintained by each municipality)
Report the amount
of collected appliances
Cooperative management organization
(EAR:Elektro-Altgeräte Register)
Contact ProReturn for
picking up and treating
used appliances
Collection
Sharp is a member of the JBRC (Battery
Association of Japan’s Portable Rechargeable
Battery Recycling Promotion Center), and
participates in the center’s Collection System
for Used Small Portable Batteries.
Europe
In EU member states, as of August 2005, the
producers of electrical and electronic equipment are obligated to recover and recycle used
electrical and electronic appliances under the
Waste Electrical and Electronic Equipment
(WEEE) Directive, which was enacted in
February 2003.
ProReturn
Consign treatment of
waste appliances
Pay the recycling fee
Collection contractor
Recycling contractor
In fiscal 2004, the JBRC recovered about 1,162
tons of used batteries.
Australia
In Australia, as a proactive initiative before the
Recycling Act is established throughout the
country, a not-for-profit company, PSA (Product
Stewardship Australia Ltd.) was established in
November 2004 to manage and promote the
end-of-life disposal of TVs in an environmentally sound manner. Sharp’s sales subsidiary
in Australia (SCA) is a foundation member of
PSA and has contributed seed funding for
PSA’s establishment. PSA is working with the
Australian government to devise a financing
model for end-of-life recycling of all TVs in
Australia and to ensure that all importers will
share the responsibility on an equitable basis
approved by the government.
Sharp will actively continue working to
improve recovery and recycling of portable
rechargeable batteries as a manufacturer of
products that use these batteries.
WEB
Participants from Sharp’s European subsidiaries in the PanEuropean WEEE Meeting
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Data on recycling of used products
Sharp Environmental and Social Report 2005
54
Recycling Used Products
Sharp is collecting discarded copiers through
two systems in Japan: a recovery system run
by the copier industry, and one built independently by Sharp.
Recycling Activities Overseas
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Promotion of Environmental Communication
To communicate its policies and efforts in environmental sustainability management to its wide range of
stakeholders, Sharp publicizes its fundamental orientation on the environment in various media and exhibitions,
including Environmental Reports, Web sites and newspaper ads. The company also makes efforts to improve
communication with local communities through site reports and factory tours.
Environmental Report and Site
Report
Every year since 1999, Sharp has issued an
annual report on its environmental activities.
Beginning with the fiscal 2002 edition, the
report added to its coverage of environmental
issues social and economic perspectives of the
company in order to give an overall view of
Sharp’s activities. The fiscal 2002 and 2003
editions of Sharp’s “Environmental Report”
won awards of merit, while the fiscal 2004
edition received the award for excellence, the
highest award given, in the Green Reporting
Awards*.
This year’s edition contains expanded coverage of the social aspects of Sharp’s business
activities. The title has also been changed to
“Environmental and Social Report”.
And, since 2004, all production sites have
been issuing site reports, which are distributed
to neighboring residents as well as to visitors
touring the plant. In future, the number of sites
issuing reports will be expanded to include
non-production sites and overseas bases.
* Sponsored by Toyo Keizai Inc. and the Green Reporting
Forum, these awards recognize outstanding environmental
reports.
Web Site on Social Environmental
Activities
Introducing content from the Environmental
Report, Sharp’s Web site also presents the latest information on its environmental activities
with detailed data on the environmental impact
resulting from its business activities.
Advertising and Commercials
In order to get messages as well as information about its environmental efforts to a wider
audience, Sharp advertises in print media and
on television. In fiscal 2003 in Japan, with the
slogan “Let’s go Ecology Class with Sharp,”
the company created TV commercials with the
theme of environmentally conscious lifestyles,
as well as newspaper ads that highlighted
its environmentally conscious one-of-a-kind
products, technologies and production plants.
Web site for Sharp’s social environmental activities
http://sharp-world.com/corporate/eco
Exchanges with Local Communities
To enhance communication with neighboring residents, the company’s domestic sites
hold events such as Sharp Festivals, as well as
conduct factory tours.
Newspaper ad
Environmental Reports
(Japanese, English and Chinese editions) and site reports
Exhibitions
In December 2004, Sharp took part in Eco
Products 2004 in Japan, conveying the theme
that “Sharp aims to achieve zero global warming impact in both business and daily life.” At
the exhibition, Sharp introduced its environmentally conscious technologies, devices and
products along with information on Sharp’s
approach to tackling environmental problems
in production.
Eco Products 2004
55
Environment exhibit at a Sharp Festival
TV commercial
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Exchanges with local communities
Example
Hosting Regional Exchanges with Local Municipalities in Japan
In an effort to promote communication and give
the local residents a deeper understanding of plant
operations, Sharp invited 13 community association
officials from the Hajikami district of Katsuragi City
to a meeting at the Katsuragi Plant in June 2004.
At the meeting, Sharp explained the history and
operations of the plant, introduced the latest key
devices produced by the plant, including laser
diodes, LEDs, opto-devices, photovoltaic power
systems and others, and also outlined the measures
Sharp is taking to turn the plant into a Super Green
Factory.
Sharp Environmental and Social Report 2005
Visitors observing the latest devices
Sharp and Society
In Pursuit of Becoming a Corporate Group
Trusted by Society
Fulfilling Corporate Social Responsibilities (CSR)
For Customers
Enhancing Customer Satisfaction
Reinforcing Information Security
For Shareholders and Investors
An Appropriate Return of Profits
For Business Partners
Mutual Prosperity with Suppliers and Dealers
For Employees
A Fair and Rewarding Workplace
A “Safety First” Work Environment
For Local Communities
Social Contribution Activities
Nara Wakakusayama Cleanup Campaign 2004.
Held since 2003, this event aims to preserve the landscape of
Wakakusayama in Nara Prefecture, Japan. The second event, held on May
22, gathered some 1,230 Sharp employees, their families and friends.
Sharp Environmental and Social Report 2005
56
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
Fulfilling Corporate Social Responsibilities (CSR)
Under our Business Philosophy and Business Creed and based on the company’s founding spirit, all employees are
uniting efforts and increasing awareness on all fronts to promote CSR awareness.
The Sharp Group Charter of
Corporate Behavior
Thorough Observance of Business
Ethics and Compliance
Business ethics and legal compliance are the
minimum social responsibilities a corporation
must uphold.
In Japan, Sharp has appointed a Chief of Legal
Affairs at each business group and affiliated
company, to prevent violations of laws or regulations in the course of business.
The company also aims to increase awareness
by publishing CSR e-mail newsletters and
continually providing educational opportunities for employees.
Concerning donations in Japan, Sharp has constructed a system of compulsory examination
by the Donation Examination Committee for
monetary donations and other cases of expenditure, thus preventing payoff and unlawful
expenditure.
Economic
dimension
Because the business activities of Sharp Corporation are clearly bounded by the development, production and sales of products as well
as devices, and further, because there is strong
interrelation between them, Sharp believes
that having all directors holding operational
responsibility at the division level make decisions after consulting with one another serves
to clarify their reciprocal managerial responsibilities and facilitates nimble, responsive
business execution. Sharp intends to further
strengthen the current Board of Directors/Corporate Auditors System, which allows management and manufacturing divisions to work
very closely, enabling the business to expand.
Through this system Sharp will enhance corporate governance.
Environmental
dimension
Social
dimension
Voluntary fulfillment
based on original principles
= Proactive CSR activities
(Areas A + B + C)
● CSR to create original technologies and products
● R-CATS small-group activities, with the participation of all employees
● Tackling environmental conservation
Engaging in social responsibilities
for sustainable development
= General CSR activities
(Areas A + B)
● Disclosure of information to stakeholders
● Various guidelines, social contributions
● Optimizing business risks
● Restoring benefits acquired through business activities to society
Topics
The Sharp Group has initiated small-group
activities called R-CATS (Revolution, Creative
Action Teams). These activities challenge
groups to address and solve common problems
and issues in the workplace from the viewpoint
of CSR, using the combined effort of everyone
at the job site. With the aim of enhancing
the strengths of both “personnel” and the
“organization” to their highest levels, R-CATS
activities are held in all divisions of the Sharp
Group. The best ones worldwide are selected for
presentation at contests twice a year to stimulate
all personnel toward reaching higher.
• Practice of Fair and Open Management
• Enhancement of Customer Satisfaction
• Disclosure of Relevant Information/
Protection and Security of Information
• Contribution to Conservation of the Global
Environment
• Sound, Equitable Economic Activities
• Respect for Human Rights
• Creating a Safe, Fair, Motivating Work
Environment
• Harmony with the Community
• Implementation of The Sharp Group
Charter of Corporate Behavior
In November 2004, about 2,800 domestic teams
and 800 overseas teams (comprising approx.
35,600 people in total) participated in R-CATS.
WEB
■
■
■
■
Fundamental social responsibility
in the course of business activities
= Reactive CSR activities (Area A)
● Compliance with laws and regulations
R-CATS small-group activities solve
problems in everyday work
The Sharp Group Charter of
Corporate Behavior
57
Corporate Governance with the
Director/Auditor System as the
Nucleus in Japan
■ Area of CSR activities
Area C
The new Sharp Group Charter of Corporate
Behavior, which places the utmost priority on
legal compliance and business ethics, further
clarifies “contributions to achieving a sustainable society” and “efforts toward good communication with various stakeholders.”
Also, the Sharp Code of Conduct clarifies
Sharp’s position on political donations and
against anti-social forces or organizations. In
this way, Sharp secures its stance of striving to
develop and maintain social order.
Area B
In May 2005, the former Sharp Charter of
Conduct was revised into the “Sharp Group
Charter of Corporate Behavior,” which is a set
of principles to guide our corporate behavior,
and the “Sharp Code of Conduct,” which clarifies the conduct expected of every employee
and director of the company.
Making it a principle to practice fair play in
business management, the Sharp Group Charter
of Corporate Behavior makes it clear that the
Sharp Group will work to prevent corruption in
all forms, including extortion and bribery.
Area A
Sharp has instituted a charter of conduct as a
model to help all employees understand and
fulfill Sharp’s Business Philosophy and Business Creed in their daily business lives.
Rules and Structure to Prevent Illegal
Granting and Expending of Benefits
Comment from Akiyo Tsuchimoto, leader of
the “eSSeM achievement team” which won
the top award
Since we were all busy with our own work, it
was hard at first to get everyone together and
work toward a common goal with the same
mindset. I believe that our team members were
not very well organized in the beginning, but
we learned from each other and enlightened
ourselves through R-CATS activities and, in
the end, we became a “real team.”
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
Carrying out business with “Sincerity and Creativity” at all times
Sharp Group’s efforts to firmly establish CSR ■ Structuring a PDCA cycle of CSR
CSR efforts in sales and marketing activities in Japan
The Sharp Group Charter of Corporate Behavior (full text) ■ The Sharp Code of Conduct (full text)
Sharp Environmental and Social Report 2005
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Customers
Enhancing Customer Satisfaction (1)
As a corporation trusted by customers and working to ensure their full satisfaction, the Sharp Group makes it
a point to publish accurate, easy-to-understand information on all its products and services. Sharp pays close
attention to the opinions, impressions and requests of its customers, and accurately reflects such findings in the
development and improvement of its products and services.
Focused on Obtaining
Customer Favor
One of the basic principles of Sharp Group
management is to provide the utmost in
customer satisfaction (CS). All development,
production, sales and service employees work
to create high-quality products and services
that not only attain a favorable evaluation from
customers, but also offer continued product
appeal.
In offering its products, Sharp encourages all
employees to make quality and safety a top priority, by always considering “Quality First in
Heart and Mind” and observing all safety laws
and regulations.
Sharp always provides speedy, accurate support for inquiries, with accurate troubleshooting, thus endeavoring to deliver “safety”to
customers all over the world.
And, to achieve CS through concrete measures,
the following items are outlined in the Sharp
Group Charter of Corporate Behavior.
Diversifying the Windows of
Customer Communication
Reflecting Customer Comments in
Products and Services
The number of requests for information in
Japan during fiscal 2004 increased by about
170,000 compared to fiscal 2003, reaching a
total of approximately 2,850,000 cases. As interest in new, never-before-seen products such
as digital consumer electronics including DVD
recorders, and the Water Oven (Superheated
Steam Oven) continues to grow, so does the
number of inquiries related to these unique
products.
There are also 4,000 cases per year of e-mail
questions originating overseas. Sharp handles
these in the same sincere manner as domestic
inquiries.
Displayed at each site as a slogan for
company-wide quality enlightenment
Through these initiatives, Sharp has been able
to promptly reflect customer comments in
production and sales activities.
■ Customer-oriented management system in Japan
Offering products that reflect customer comments
The Sharp Group Charter of
Corporate Behavior
Purchase
consultation calls
Customer
comments
How-to-use calls
Consultations,
requests, demands
Repair inquiry calls
Customers
“Enhancement of Customer Satisfaction”
● The Sharp Group will contribute to
the development of society by creating
innovative, original products and services
that can revolutionize lifestyles across
the globe, always seeking to offer people
never-before-imagined possibilities while
caring for the environment.
● To gain the trust of our customers and
ensure their satisfaction, the Sharp
Group will provide products and services
that address its customers’ needs
and aspirations, and meet or exceed
applicable industry standards for safety,
quality and reliability.
For the purpose of spreading and assimilating customer comments in-house, even more
so than in the past, Sharp launched two new
initiatives in fiscal 2004. The first delivers a
monthly report (or a weekly report for priority
products) to a product division, detailing the
inquiries and information requests received
regarding a new product for up to 3 months
after its launch. The second initiative is “a new
product quick information system,” in which
warning e-mails are automatically sent to the
heads of each department in the concerned
division. This occurs when similar complaints
are received about the same model several
times.
Complaints,
requests
Appropriate
reply/advice
Suggestions for
improvement
Q&A information
Helpful information
Web mail consultations
Repair support
Web
support
Servicing company
(SEK, SDS)
Integrated
Call
Center
Information
database on
customer
consultations
Customer comment information
(“Q information*1” “Quick information*2”, etc.)
New product information,
Q information replies, etc.
Personal experience study
on customer consultations
Periodic meetings
・ Confirming cause
・ Measures to prevent recurrence
・ Coping with market improvement
Consultation
information
Market quality information
Division
general
manager
Product
development
engineering
division
Product
planning
division
Quality
control
division
Improvement measure information
Note: To protect privacy, information that is shared within Sharp excludes personal information.
*1 Q information: Data on improvement sent by the Integrated Call Center to product divisions.
*2 Quick information: Complaints about new products.
Sharp Environmental and Social Report 2005
58
Fulfilling Corporate Social Responsibilities (CSR)/For Customers
Responding to diversifying lifestyles, Sharp
is increasing the functionality of its customer
communication windows in Japan. In addition
to receiving telephone inquiries at the Integrated Call Center, Sharp has posted “Q&A
Information” on its Web site, based on frequently asked questions, as well as a glossary
of technical terms with easy-to-understand
definitions. Moreover, Sharp is expanding
Web support further by providing download
access to instruction manuals for major Sharp
products.
Sharp’s Customer Information Center in Japan,
which handles direct inquiries and information
requests, aims to deliver maximum satisfaction
by thinking from a customer’s point of view
and anticipating customer needs.
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Customers
Enhancing Customer Satisfaction (2)
Cases of Complaints Decreased and
“Satisfied” Evaluations Exceeded 90%
“Personal Experience Study” on
Handling Customer Consultations
Starting in May 2000 in Japan, Sharp introduced a program for employees to take part
in a “personal experience study.” During the
study, employees experience handling customer inquiries so that they can work to improve
customer satisfaction by taking the customer’s
feelings into consideration in future duties.
In fiscal 2004, Sharp began conducting the
program as part of promotion training for
mid-level employees working in the product
planning, engineering, quality control and
sales departments of Sharp’s product divisions.
As a result, employees who are to play central
roles in production jobsites now recognize the
importance of lending an ear to customer comments.
Comments of a
“personal experience
study” participant
Shuichi Fujita,
Assistant Manager
Technical Dept. II
LCD Digital Systems Division I
Audio-Visual Systems Group
During the personal experience study, I
gained first-hand experience in fielding
diverse inquiries and discovered the
importance of speaking directly with
customers.
Hereafter, I would like to tackle the
development and design of new products
from a customer standpoint, questioning
whether a function is really needed and
considering how I can make the required
functions easier to use.
Sharp strives to set up repair/maintenance
service systems that meet customer needs and
boost customer satisfaction in Japan. Sharp
has introduced special service systems, such as
“after-repair calls,” which ask customers about
the status of a product after completed repairs,
and “pick-up repair service of consumer electronics” for specific products. Sharp also sends
out female service engineers to user locations
where only women are present.
As a result, the number of complaints related to
repairs and maintenance service in fiscal 2004
decreased 20% from the previous year, and the
results from service questionnaires reached a
90.3% evaluation response of “satisfied.”
In view of such results, Sharp will continue to
provide meticulous service in responding to the
needs of its customers.
A trainee answering an inquiry from a customer while a veteran
consultant (left) looks on
Furthering Ease of
Use with Usability Tests
Sharp places high importance not only on the
functional quality of products, but also on
a product’s ease of use, also called the “usage quality of products.” With this in mind,
the person in charge of product planning and
development directly observes people actually using the product and verifies ease of use.
These “usability tests” have been introduced in
all product divisions. As a result, the person in
charge quickly discovers factors that hinder the
product’s ease of use and makes modifications
for greater usability.
With an aging society in Japan, it is more important then ever to give special consideration
to the needs of seniors. Moreover, consideration for people with disabilities is also growing throughout the world. With this in mind,
Sharp is working to adopt universal designs by
developing products that can be easily used by
everyone.
59
Example
■ Improvement of LCD TV remote control
Before
Customers said that it
looked too complicated
with so many buttons
to push and labels so
difficult to read.
After
Redesigned with only
the needed buttons
to fit a compact size,
easy-to-read characters
and color-coding for
improved ease of use.
■ Improvement of instruction manual for
digital high-definition recorder
Sharp Environmental and Social Report 2005
Before
Customers said that the
manual was difficult to
understand because it
used too much technical
DVD terminology.
Moreover, they stated
that the instruction
manual was thick and
troublesome to read.
After
Sharp reworded
operation methods
using simple words
and illustrations. A new
“simplified guide” was
prepared to explain
basic operations with
just one book.
Making the Most of CS Surveys in the Development and
Improvement of Products
Immediate Disclosure of Quality
Problems
Example
Since 1992, Sharp has been conducting surveys
in Japan on the degree of customer satisfaction
with product use (CS surveys).
In the event that damage is inflicted upon customers, or the potential of harm to life, body
or property is discovered in relation to the use
of Sharp products, Sharp will disclose such
information immediately through newspapers
and its Web site, and provide an inquiry desk
to keep customers informed and minimize any
inconvenience.
■ Improvement of
the dual-swing door refrigerator
After conducting a CS survey, Sharp
found that although customers held high
expectations for double-door refrigerators
on two points, namely their ease of opening
and ease of putting in and taking out egg
cases, the actual degree of satisfaction
was low.
A key benefit of the CS survey is that the
correlation between the individual degree of
satisfaction (degree of satisfaction related to
each function of the product) and the degree of
overall satisfaction (degree of satisfaction for
the product as a whole) is expressed numerically and graphed, from which a CS portfolio
analysis is made. As a result, Sharp can clearly
identify priority areas of improvement for each
product and conduct effective product developments and improvements.
During fiscal 2004, when irregularities were
found in color TVs and commercial-use air
conditioners, and in fiscal 2005 in singlecrystal photovoltaic modules, Sharp inspected
and repaired them free of charge.
Sharp made the following improvements
based on survey results, as well as
adopting an ultra-low-speed inverter to
reduce operation noise and increasing the
volume of the chilled compartment by 40%.
To further strengthen its product CS survey,
Sharp plans to conduct surveys through the
Web in the near future.
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
WEB
*1 *2 Examples of improvement based on the Refrigerator CS
Portfolio Analysis below.
■ Example of a refrigerator CS portfolio analysis
Little
Items with
problems
Require urgent
improvements
Relativity to the degree of overall satisfaction
(partial coefficient correlation)
Degree of expectation
Great
Degree of satisfaction
Items requiring
attention
Especially those
with low satisfaction
require
improvement
Superior
items
Keep with
priority
3
Speed of making ice
2
Depth
1
Ease of cleaning tank
0
Ease of putting
in and taking
out bottles
−1
Dual-swing door
Ease of use for
the freezer
Storage volume
of freezer
Operation noise
Deodorizing effect Volume of chilled
compartment
Ease of putting
Height in large vegetables
Noise of
opening
and closing
Ease of opening and closing
dual-swing doors*1
Ease of putting
in and taking
out the egg
case*2
−2
Low (dissatisfied)
Items to be
maintained
Keep the
good points
High (satisfied)
Satisfaction of structure of dual-swing door refrigerator
Evaluation of individual satisfaction elements (average score)
Low (dissatisfied) Degree of satisfaction
High (satisfied)
■ Concept of CS portfolio analysis from the CS survey
■ Quality guarantee system and quality
guarantee activities
−3
0
Little
0.2
0.4
0.6
Degree of expectation
Sharp Environmental and Social Report 2005
0.8
Great
60
For Customers
Ease of opening of dual-swing doors*1
The physical effort required to open doors
was reduced by 17%. Now doors can be
opened and closed with very little effort.
Ease of removing and
replacing the egg case*2
The adoption of a “double opening pocket”
makes it possible to place the egg case on
either the left or right side. This makes it
quick and easy to take eggs out from the
front.
In fiscal 2004, Sharp conducted CS surveys
on a range of products, including air purifiers, dishwashers, PDAs and digital MFPs,
and incorporated the survey results in product
improvement.
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Customers
Reinforcing Information Security
With the recently enacted Personal Information Protection Act in Japan, companies must now take more responsibility
than ever for ensuring the privacy of information. This is why Sharp is aiming to become a company that can be trusted with
information by strengthening information management systems, improving the safety of its information infrastructure, and
providing employees with comprehensive training on information management and security.
Reorganization to Boost Personal Information Protection
Sharp has been concentrating on improving its
information management system to ensure that
information is kept safe. In January 2003, the
Sharp Group in Japan established information
security regulations and set up the Information
Security Committee.
policies and in-house regulations to conform
to the law’s stipulations. Sharp then created
conditions conducive to thorough and safe
management of information: Sharp made rules
for the handling of personal information, and
created a management ledger to keep track of
personal information being gathered and stored
by Sharp and its affiliated companies in Japan.
To comply with the Personal Information
Protection Act, which was fully enforced in
April 2005, Sharp established the Information Security Promotion Department in April
2004 and the Personal Information Protection
Promotion in November 2004. Also, Sharp
established personal information protection
Sharp also has online e-learning courses in
personal information protection for all employees and basic information security technology
seminars for managers.
For key departments that deal directly with
■ System for information security and protection of personal information in Japan
Information
Security
Committee
Information Security
Management System
Chief information
security officer
Rule deliberation
Infrastructure building
Training, education
Corporate Senior Executive
Vice President,
Chief General
Administration Officer
Chief privacy
officer
Information
Security
Promotion
Department
Chairman
Management
supervisor
Personal Information
Protection System
Business group
supervisor
Business group
supervisor
Management
supervisor
Management
supervisor
Department
general
manager
Department
general
manager
Personal
Information
Protection
Promotion
Group general
manager
Group general
manager
Department
general
manager
Department
general
manager
customers, Sharp is aiming to achieve the
highest level of safety in information management by acquiring authorization for third-party
certification systems related to privacy and
information security.
In fiscal 2005, Sharp is working to achieve
an even higher level of personal information
protection and to ensure that the company can
maintain its information technology-based
business activities. Sharp will do this by carrying out internal audits on personal information
management and by stepping up information
security measures.
Meanwhile, the Sharp Group overseas continued to strengthen existing information protection systems while also carrying out investigations in fiscal 2004 on how to strengthen future
information management systems.
In fiscal 2005, Sharp will strengthen systems
in various countries and regions around the
world̶as Sharp has done in Japan̶and train
a new group of leaders capable of guiding
Sharp employees in information security.
In key departments that handle a large number
of inquiries and in the Personal Information
Protection Promotion, Sharp has established
call centers to handle inquiries on personal information in Japan. As well, items that should
be made public, such as policies on personal
information protection, are put on Sharp’s
official Web site (in Japanese; www.sharp.
co.jp/privacy-j.html).
■ How Sharp ensures constant security
The Sharp Group works to ensure constant and ever-improving information security, including the protection of personal information.
Initiative
Domestic
Sharp
Group
Actions up to fiscal 2004
Compliance with the
・ Reviewed information security control in
newly enacted Personal
divisions handling personal information*1
Information Protection
・ Revised Information Security Regulations
Act
Revamping of
information
infrastructure
・ Established protection measures and enforced
stricter control of servers and computers
・ Began efforts related to the IT Security
Management Measures*2
Stricter control
rules
・ Established the IT Infrastructure Building
Rules (focused on introducing them in
factories)
・ Improved and continuously carried out measures
Overseas
Sharp
Group
Implementation
for diagnosing things like connections to external
of basic measures networks, viruses and security
Revamping of
information
infrastructure
・ Helped overseas bases comply with the IT
Security Management Measures
Actions planned for fiscal 2005
Strengthen information security
governance
・ Implement internal audits for
information security
・ Introduce stricter management of PCs
and servers
・ Tighten monitoring of unauthorized
PC use, including at subcontractor
companies
・ Establish measures to protect
information flowing between partner
companies
・ Build a system to advance information
security on a global scale
・ Make stricter rules for top secret
information
・ More closely protect information on
notebook PCs
・ Boost security management of servers
*1 Based on guidelines published by the Ministry of Economy, Trade and Industry
*2 IT safety measures relating to personal information in electronic form, as stated in the IT Security Management Measures of the
the Personal Information Protection Act (controlling access to information systems, pirated software, information system monitoring, etc.)
61
Sharp Environmental and Social Report 2005
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Information Security Management System
(ISMS) efforts and authorization, acquisition of
privacy certification
■ Information security audits
■ Employee security training
■ Information leak prevention measures using
information technology
■ Improved cooperation with business partners
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Shareholders and Investors
An Appropriate Return of Profits
One of the most important management principles for the Sharp Group is to return a portion of profit to shareholders. That’s
why Sharp strives to offer shareholders consistent dividends and implement other measures such as increasing these dividends
according to the company’s business results and financial situation. Sharp also strives to supply shareholders, investors
and other stakeholders with prompt, accurate information, as well as ensure transparency through a wide range of public
disclosure.
Investor Relations
Consistent Dividends
Sharp considers distributing profits to shareholders to be one of the most important
management issues. While maintaining consistently stable dividend pay-outs, and while
carefully considering its business performance
and financial situation in a comprehensive
manner, Sharp has implemented a set of policies to return profits to its investors, such as
increasing the amount of periodic dividends.
Annual dividends in fiscal 2004 were 20 yen
per share, which marked an increase for the
fifth consecutive period.
Sharp prints Business Reports (in Japanese)
and Annual Reports (in Japanese and English).
It also publishes a variety of information when
necessary on the Sharp Web site (sharp-world.
com/corporate/ir/index.html). All of this
information is meant to provide stakeholders
with valuable details in an easy-to-understand
format.
The main IR activities in fiscal 2004 were analyst meetings to announce quarterly financial
results, business strategy meetings and factory
tours. Sharp also visited major shareholders
and investors in Japan and overseas to hold
meetings on business results and company
overview. The valuable feedback gathered from
shareholders, investors and analysts at these
meetings is regularly relayed to Sharp management for future improvements.
As part of appropriate information disclosure
to stakeholders, Sharp cooperates in good faith
with research organizations doing surveys on
socially responsible investment (SRI).
SRI refers to the investment and financing of
companies that contribute to solving social
problems and that balance economic performance and social responsibility. In fiscal 2004,
Sharp was added to the following SRI indices.
• FTSE4 Good Global Index (UK); September
2004
• Ethibel Sustainability Index (Belgium)
• Morningstar Socially Responsible Investment
Index (Japan); July 2004
For Customers/For Shareholders and Investors
To raise the operational efficiency of shareholder equity and further raise shareholder
value, Sharp employs the treasury stock
system* when the situation allows. In addition,
Sharp uses internal reserve funds for investment in future growth fields, the development
of uniquely featured products and proprietary
devices, overseas business development, and
environmental protection measures.
Sharp strives to provide prompt, fair and accurate information to shareholders and investors.
Constituent of Three SRI Indices
(Equity Indices) in Japan and
Overseas
* Treasury stock system: A legal system related to the
acquisition and holding of stock in-house. Treasury stock is
a company’s own stock that it purchases on the market and
keeps. If a company acquires its own stock, it can effectively
raise the ROE (return on equity) by reducing shareholder
equity.
■ Net income per share (consolidated)
(fiscal year)
2000
2001
2002
2003
2004
34.20
10.10
29.37
55.37
70.04
(yen)
■ Dividend per share
(fiscal year)
2000
2001
2002
2003
2004
13
14
15
18
20
(yen)
2004 Annual Report
(in Japanese and English)
Staying Financially Healthy and
Raising Corporate Value
The Sharp Group makes various efforts to
ensure that corporate value can grow further.
These include aiming to improve ROE (return
on equity) and free cash flow, as the main
management indicators in terms of profitability, shareholder value, and efficiency of
capital utilization. Sharp is also focusing on
controlling its return on investment in all its
business divisions based on PCC (profit after
capital cost), which is calculated by subtracting
the cost of invested capital from NOPAT (net
operating profit after income taxes).
WEB
Business Report (in Japanese)
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Investor relations
Sharp Environmental and Social Report 2005
62
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Business Partners
Mutual Prosperity with Suppliers and Dealers
Sharp procurement activities are carried out based on the Basic Purchasing Principles: Sharp purchases outstanding parts and
materials, which meet its demands, through just and fair evaluation, thus ensuring that all domestic and overseas companies
are provided with equal opportunities. It is also Sharp’s belief that CSR activities should apply to the entire supply chain,
including its suppliers.
Equal Opportunity and Fair Evaluation
for All Domestic and Overseas Suppliers
With business activities spanning the globe,
Sharp receives parts and materials from numerous domestic and overseas suppliers.
When undertaking procurement activities,
Sharp provides an equal opportunity to all
domestic and overseas suppliers, and attains
superb materials that comply with Sharp
conditions and requests through fair evaluations. Moreover, to ensure a continuous supply
of superb parts and materials, it is essential for
Sharp to pursue a prosperous coexistence with
its suppliers. Consequently, in 1990, Sharp
stipulated “Basic Purchasing Principles” that
clearly describe the fundamentals of impartial
and fair purchasing, and promote the development of mutual collaboration and trust.
Making CSR a Common Goal Across
the Entire Supply Chain
To successfully fulfill its social responsibility,
Sharp must be conscious of CSR in all its business processes. This includes fulfilling social
responsibility not only within its own group,
but also within its entire supply chain and
network of suppliers. Moreover, Sharp believes
that this is how the Sharp Group and its suppliers will earn the trust of society and achieve
the true meaning of a mutually prosperous
coexistence.
Consequently, in May 2004, Sharp revised its
Basic Purchasing Principles to include items
such as conservation of the environment, the
compliance with laws and regulations, no
disclosing of confidential information and
the CSR approach, and made a notification
through the Sharp Web site.
Basic Purchasing Principles
1. Basic procurement concept
1) Sharp’s procurement activities are conducted
in an open and impartial manner, with a fair
evaluation given to suppliers in and outside
Japan.
2) Sharp will comply with laws and regulations,
and achieve mutual prosperity with suppliers.
3) Sharp will practice social responsibilities such
as conservation of the environment through its
procurement activities.
4) Sharp pursues optimal quality and cost to the
fullest.
2. Guidelines for procurement activities
1) Open and impartial procurement activities and
purchase at optimal cost
4) Securing good product quality
5) Securing steady delivery time and stable
supply
6) Leading technology
3. Requests to suppliers
1) Compliance with laws and social standards
2) Promotion of sound business operations
3) Consideration for the environment
4) Securing optimal quality and cost
5) Stable supply of parts and materials
6) Leading technology
7) No disclosing of confidential information
3) Conservation of the environment
■ Close communication for mutual understanding (Japan)
To build strong relationships with its suppliers, Sharp communicates proactively to pursue a balance of mutual understanding.
Sharp
63
In June 2005, Sharp further revised its Basic
Purchasing Principles. This information,
including the specific items which suppliers
are requested to observe, was then made open
to the public on Sharp’s Web site.
(revised June 2005)
2) Establishing mutual relationship
Entire company
Business and Purchasing Policies
Explanation Meeting (once a year)
Business groups
Management meeting with suppliers
-Explanation of industrial and product trends
-Explanation of business policies
-Open exchange of opinions
Purchasing
staff
Furthermore, in Japan Sharp clarified articles
within its basic business agreement, which
forms the foundation for Sharp’s interactions with suppliers. The document now
reflects Sharp’s stance on conservation of the
environment and compliance with laws and
regulations, strengthens the position of quality
control and quality assurance, and includes
articles corresponding to revisions in the
Japanese Subcontract Act, which was revised
in April 2004.
Buyers from each parts category
exchange opinions and information
with business partners on a daily
basis.
Sharp Environmental and Social Report 2005
Close
communication
and mutual
understanding
Business
partners
Management meeting with suppliers in Japan
Promoting “Eco-Conscious
Lifestyles”
Approaching CSR Together with
Suppliers
In fiscal 2004, Sharp invited suppliers in
Japan to a CSR Explanation Session and CSR
Seminar, and implemented a CSR promotion
system at each company. Also, Sharp devised a
checklist to let suppliers evaluate their current
status.
Encouraging environmental actions, Sharp’s
Environmental Protection Group supervised
and hosted “Environmental Information
Network” group seminars for major suppliers.
In the seminars, Sharp provided advice on how
to reduce environmental burdens in business
activities, how to promote environmental
activities, and information on the process of
acquiring ISO14001 certification.
In the future, Sharp plans to enlarge this target
group and establish a “CSR Network” for the
purpose of dispersing CSR information.
■ CSR development with suppliers (Japan)
CSR development
with suppliers
Compliance
Environmental
efforts
CSR self check
CSR network
Environmental
Information
Network
Basic Purchasing
Principles
Purchasing
regulations
For retail partners in Japan, Sharp provides
education on the environmental performance of
its products and enviromental information that
can be useful in the management of their company. In fiscal 2004, as a new initiative, Sharp
hosted an “Environment Forum” seminar on
environmental management aimed at consumer
electronics stores. By the end of March 2005,
more than 1,000 retail stores had taken part in
the seminars, where Sharp discussed environmental issues such as the relationship between
global warming and consumer electronics and
introduced ways of recommending Sharp’s
energy-saving products to customers.
Green Procurement
Guidelines
Environmental Information Network seminar
Topics
Hosting CSR explanation sessions
to request green procurement and strict compliance
On April 21, 2004, Sharp hosted a CSR
Explanation Session for 90 executives from
65 of its suppliers in Japan. The purpose
of the explanation session was to have
suppliers who play a major role in Sharp
production gain a clear understanding
of CSR and introduce it in their own
operations.
Following the session, Sharp heard from
attendees that they were able to understand
the purpose of promoting CSR very well.
During the event, Sharp described trends
in environmentally related laws and
regulations and requested the cooperation
of its suppliers with “green procurement”
throughout the entire supply chain as well
as thorough compliance (the observance of
laws and regulations).
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Basic Purchasing Principles (full text)
Sharp Environmental and Social Report 2005
64
For Business Partners
CSR explanation sessions/seminars
Procurement
Since fiscal 2003 in Japan, Sharp has executed
a company-wide campaign under the slogan
“Let’s Go Ecology Class with Sharp.” The
campaign proposes new “eco-conscious lifestyles” which maintain prosperity and comfort
while giving consideration for the environment. Sharp aims to develop this initiative into
a long-lived, definitive action for all stakeholders to contribute to improving environmental
awareness.
Sharp and Society In Pursuit of Becoming a Corporate Group Trusted by Society
For Employees
A Fair and Rewarding Workplace
To create a fair and rewarding workplace, Sharp protects the basic human rights and personal dignity of all employees,
provides opportunities to enthusiastic employees, and fosters the diverse abilities of each employee.
Basic HR (human resources) Policy
For the mutual growth of both the company
and employees’ happiness, Sharp upholds
the following principles.
• Implement a corporate-asset-oriented
management strategy, which values the
experience and technical skills of each
employee
• Carry out flexible personnel placement with
a focus on “putting the right employee in
the right position,” based on performance
and ability, without favor or partiality
• Provide support so that each employee can
deepen their expertise, as well as obtain
knowledge and skills in a broad range
Basic Human Rights and
Personal Dignity
The Sharp Group stipulates in the Sharp
Group Charter of Corporate Behavior and the
Sharp Code of Conduct instituted in May 2005
the corporate policy and guidelines for all
individual executives and employees regarding
protecting personal dignity. To promote these
values, human rights seminars are held regularly at each Sharp domestic site.
The Sharp Group encourages its business partners through the Basic Purchasing Principles
to uphold the same standards in respecting human rights.
Labor-Management Relationship
through Dialogue
Sharp values dialogue with labor unions. In
Japan, Sharp has monthly labor-management
meetings, such as the Central Labor-Management Council involving top executives
from both sides, as well as Local LaborManagement Council meetings at each site for
exchanging opinions about business environments and labor-management subjects. In Europe, Sharp has held European Works Council
meetings every year since 1997.
Personnel System that Values Employee Initiative and Fosters Diversity
Leadership Program and
Challenge Course
Sharp introduced the Sharp Leadership Program in fiscal 2001 in Japan as an educational
system targeting all employees, from younger
staff members in semi-managerial positions to
those in supervisory positions, with the objective of systematically nurturing management
personnel. In addition to education implemented in relation to an MBA (Masters of Business
Administration) curriculum, this program provides practical training that includes overseas
assignments and participation in a key project,
and is intended to nurture management potential and leadership that is in line with global
standards.
The Challenge Course, for younger staff members in semi-managerial positions, strips away
seniority-based factors and sets up a monthly
compensation system based on performance.
Along with an education support system, it is
intended to enable early promotion of younger
personnel.
MOT* Program
To foster the professional development of its
management executives who contribute to the
future creation of products and their commercialization, Sharp introduced the MOT
(Management of Technology) Program in
April 2005 in Japan.
Using original Sharp content and led by Sharp
executives in technology fields, the MOT Program covers topics such as the origin of Sharp’
s basic attitude towards the creation of products. It also includes courses on technology
management theory from outside lecturers.
* MOT (Management Of Technology): The Massachusetts Institute of Technology in the United
States was the first to start a special lecture on
management of technology. The purpose of the
course is to understand both technology and management and to develop managers who are capable
of creating new business and stimulating current
business.
Personnel Declaration/Career
Development System and Career
Development Rotation
Under Sharp’s Personnel Declaration/Career
Development System, once a year all employees in Japan document a career development
plan and their job aptitude. Sharp then uses
the information for the purpose of developing
skills and organizing job rotations.
Sharp also implements a Career Development
Rotation to give employees in Japan the opportunity to experience multiple types of jobs.
The aim is to systematically foster “T-shaped”
personnel who balance a high degree of expertise and a wide intellectual horizon.
Recruitment Entry System
Sharp implements the Recruitment Entry System in Japan to solicit personnel from among
all employees company-wide, inviting them
to take newly available positions in critically
important areas, such as pioneering new business and developing new technologies and
products. In fiscal 2004, jobs were offered in
approximately 60 projects, resulting in about
100 employees being assigned a new position.
Master System
Sharp introduced the Master System in October 2003 in Japan. Its purpose is to vitalize the
company organization by creating and developing one-of-a-kind skills, passing down these
technical skills to the younger generation, and
fostering master technicians. The system covers seven types of skills. In fiscal 2004, Sharp
certified five employees as Masters.
Step-up Campaign
Supporting the development of its employees,
Sharp introduced the Qualification Acquisition
Encouragement Plan in September 2004 in
Japan to reward employees who have acquired
any of the specified six qualifications, such as
public accountant certification.
Adding to this in 2005, Sharp broadened the
range of qualifications, from specialized fields
such as technology and technical skills to
foreign languages and IT, which are directly
connected to daily duties. Sharp now provides
incentives in recognition of 56 qualifications.
Central Labor-Management Council
65
Sharp Environmental and Social Report 2005
Expanding the Range of Benefits which
Support Working Women
Seminars Classified by Function
and Job Type
In Japan, Sharp holds seminars classified by
function and job type for employees to deepen
their knowledge and required expertise. The
company also offers a versatile selection of
self-development support programs, such as
open lectures, e-learning, correspondence
language courses and other skill-improvement
seminars.
One example is the voluntary Essential
Course, which gives participants across the
company a chance to simultaneously receive
lectures by renowned specialists outside the
company via a TV conference system. This Essential Course is so popular that many employees attend lectures even on holidays.
In Japan, Sharp offers various benefits, such
as maternity and parental leave, for working
women (see below).
Sharp has also formed action plans based on
the Japanese “Law for Measures to Support the
Development of the Next Generation,” which
came into effect in April 2005, and is making efforts to create a working environment
in which children can grow up healthy and
sound, and in which employees can demonstrate their abilities to the fullest.
Supporting Self-Reliance of the
Physically and Mentally Challenged
Seminars classified by function
Affirmative Action* for Women
Currently, about 20 women hold managerial
positions and 350 sub-managerial positions at
Sharp in Japan. To strengthen the recruitment
of more women managers, Sharp started a fullfledged “Company-Wide Affirmative Action
Promotion Campaign” in April 2005, which
aims to foster and support personnel who can
take on Sharp’s one-of-a-kind strategy.
Concrete measures include: 1) developing new
job fields for women, 2) implementing skill
development programs to select candidates and
foster them into management, and 3) implementing job rotations to provide opportunities
for developing skills. Through actions such
as these, Sharp is giving ambitious female
employees the chance to make the best of their
abilities and qualifications.
* A voluntary effort by a company that seeks to
redress discrimination of women in employment to
ensure equal opportunity.
Sharp’s commitment to the physically and
mentally challenged dates back to 1950, with
the founding of Sharp Tokusen Industry Co.,
a special subsidiary in Japan specifically for
the physically and mentally challenged. Sharp
has also established a committee to promote
employment of those who are physically or
mentally challenged, and remains committed
to creating a worker-friendly environment for
physically and mentally challenged employees.
In fiscal 2004, Sharp’s physically and mentally
challenged employment rate in Japan reached
1.91%.
■ Employment rate for the physically
and mentally challenged in Japan
1.8
1.6
1.4
At present, Sharp is aiming to complete these
revisions by July 2005, by taking into account
the opinions of employees in various positions
to create a new system.
Consultation Hotline for Employees
Sharp has an internal joint labor-management
hotline in Japan for receiving claims and consultations from employees via intranet e-mail
and documents. With the hotline in place, the
company can immediately investigate and take
action on violations of rules in the workplace
and work swiftly toward solutions. The hotline
also handles claims from contractors who are
stationed at or regularly come to Sharp sites.
Claims and consultations
occur
Including contractors who are
stationed at or regularly come
to Sharp sites
Hotline
Received via the intranet
and documents
1.91
1.85
1.84
1.83
1.80
1.80
1.80
1.80
1.49
1.49
1.48
1.46
2001
2002
2003
1.2
Planned measures will be
reported directly to claimant
● Protect privacy of claimant and prevent
any actions that discriminate against
any claimant
● Investigation and consideration of
measures soon after contact with
hotline
● Results will be directly reported to
claimant
General claims/consultations
Problems related to
sexual harassment
Examination Committee
Sexual Harassment Claim
Solution Committee
Consider measures
Carry out improvement plan, follow-up action
and prevention plan
WEB
(%)
2.0
In April 2005, Article 35 of the Patent Law
in Japan regarding employee inventions was
amended and re-introduced. Prior to that date,
Sharp held a conference with all employees in
Japan to discuss upcoming revisions to
Sharp’s “Regulations for Employee Inventions.” Under the revised version, an employee
who invents something will be required to
report it to the company, at which time the
employee and the company will immediately
decide the award for giving up rights to the
company.
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ SHINE program
■ Commendation system
■ Respect for intellectual property rights
■ Number of Sharp Group employees
■ Sharp Corporation s employee personnel
structure
1.0
0
Sharp
Corporation
Rate
mandated
by law
2004
(fiscal year)
Average of all
private-sector
firms
Sharp Environmental and Social Report 2005
66
For Employees
• Maternity leave and parental leave, as
well as limited working hours to allow for
childcare, which provide more days off and
for a longer period of time than stated in
laws
• Time-difference commuting for pregnant
workers
• Reemployment for workers who left work
for childbirth and childcare
• Leave to help children adjust to nurseries
• Childcare support system
• Subsidies to employees to pay for in-home
nursing care, etc.
Fair Rewards for Employee Inventions
Sharp and Society In Pursuit of Becoming a Corporate Group Trusted by Society
For Employees
A “Safety First” Work Environment
Sharp has formulated a “Basic Philosophy” and “Safety and Health Principles” based on a safety-first policy. Its safety and
health slogan for fiscal 2005 is to “create a work environment where employees can work safely and maintain strong mental
and physical health so that Sharp and it employees can grow together.” With this in mind, Sharp is working to prevent
industrial accidents. And, based on its Healthy Sharp 21 comprehensive health-promotion program, Sharp is helping its
employees and their families stay in good health.
Labor and Management Discuss
and Promote Safety and Health
Sharp is aiming for zero industrial accidents
by holding meetings of the monthly Safety and
Health Committee and the regular Safety and
Health Communication Meeting with contractors stationed at each site in Japan. Each site
sets specific goals and carries out various activities. Specifically, Sharp carries out periodic
workplace safety inspections and fire evacuation drills, as well as a variety of specialized
advisory programs (mental health counseling,
traffic safety classes, health management for
long-hour workers, etc.). These efforts aim to
heighten safety awareness among employees
and eradicate unsafe behavior.
Sharp also holds Central Safety and Health
Committee meetings in Japan as a forum to
share information regarding safety and health.
The meetings bring Sharp and the labor union
together every two months, at which time they
confirm the status of safety and health efforts
and share valuable information.
Basic Philosophy
With the goal of creating a work environment where
everyone at Sharp can work safely and healthily,
Sharp places the utmost priority on health and
safety and is working with sincerity and creativity to
achieve the target of zero industrial accidents.
Safety and Health Principles
① Zero industrial accidents.
② Each individual promotes his or her own safety
and health.
③ Observe the rules and coexist in harmony with
local communities.
FY2005 Safety and Health Objectives
・ Raise safety awareness in each employee and
eliminate potential causes of danger in daily
duties, to achieve zero industrial accidents.
・ Build a system to secure the safety of employees
in cases of natural disasters, fires and other
hazardous external factors.
■ Industrial accident rates in Japan
(per thousand man-hours/year)
At Sharp, the occurrence of industrial accidents (per thousand man-hours/year, closure
of more than 4 days) is far below the average
value for the whole industry and the manufacturing industry in Japan. However, 2004 saw
an increase in the number of accidents.
(persons)
Sharp once again clarified its stance on building a safety-first work environment by establishing the “basic philosophy” and “safety and
health principles” in fiscal 2005. And to eliminate accidents, Sharp formulated measures that
include company-wide safety and health objectives and a yearly promotion plan to strengthen
safety and health efforts across the entire company.
2.0
These policies were communicated to all
domestic sites at a “company-wide safety and
health kick-off meeting.” Safety and health
conventions are also held at individual sites as
part of the company-wide campaign.
Confirming locations of fire extinguishers and other stationary
equipment and opening/closing of pipes
67
4.0
Sharp 21 includes voluntary fitness programs
and expanded health guidance.
Sharp also gives employees periodic physical
checkups to maintain their health, with 99.8%
of all domestic employees undergoing these
checkups in fiscal 2004.
Sharp will give employees screened for further
medical examinations in-depth health maintenance guidance and consult with them on
changing their working conditions and requirements.
■ Physical checkup participation rates
(in Japan)
(%)
100
99
99.1
98.9
99.8
99.6
98.8
98
97
2000
2001
2002
2003
2004
(fiscal year)
Mental Health Care
2004
Sharp’s comprehensive Stress Care System in
Japan aims to prevent and deal with mental illnesses at an early stage. In addition to providing mental health checkups for employees who
have had a change in their work environment,
such as a job transfer, Sharp appoints company
counselors at its main sites. The company also
provides employee consultations by phone or
in person with outside specialized medical
institutes. Moreover, to promote correct awareness of mentally related problems, Sharp holds
training by specialists and a variety of educational activities over the intranet.
Note: Averages for all industries and the manufacturing
industry are based on a survey by the Ministry of Health,
Labor and Welfare.
What’s more, Sharp follows up on employees
returning from medical leave through a support program that combines the efforts of the
company physician and the employees’ respective departments.
1.82
3.6
3.5
3.0
3.5
3.3
3.5
2.8
2.7
2.6
2.6
0.21
0.26
0.26
0.17
2000
2001
2002
2003
2.5
1.5
1.0
0.5
0.0
0.47
(year)
Manufacturing industry average
All-industry average
Sharp Corporation
Health Promotion for Employees and
Their Families
Diseases caused by lifestyles and habits,
such as high cholesterol, high blood pressure,
diabetes and heart disease, have become major
social and economic problems. That’s why
Sharp created Healthy Sharp 21, a comprehensive health-promotion program in Japan
to encourage employees to voluntarily change
their lifestyles and daily habits, to prevent
these diseases so that they and their families
can enjoy a healthier, happier life. Healthy
Sharp Environmental and Social Report 2005
■ Scope of the Sharp Stress Care System
・ Face-to-face counseling with company counselors
・ Medical counseling with outside specialized medical
institutes by phone or in-person
・ Distribution of handbooks or manuals on mental health
care
・ Mental health seminars
・ Mental health checkups for employees undergoing work
environment changes, such as job transfers
・ Educational seminars for managers
・ Support programs to ensure that employees maintain
their mental health
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Encouraging smoke-free workplaces
■ Accident risk management
Sharp and Society In Pursuit of Becoming a Corporate Group Trusted by Society
For Local Communities
Social Contribution Activities (1)
In 2003, Sharp launched the Sharp Green Club (SGC) jointly with its labor union, with the aim of coordinating the expansion and
diversification of environmental conservation activities that would help the Sharp Group contribute to society. The SGC acts as
the core for developing and carrying out vigorous environmental action by Sharp sites in Japan and around the world.
Sharp Green Club— Approximately 80% of All Employees in Japan Participated
in Environmental Volunteer Activities
In June 2003 in Japan, Sharp and its labor
union jointly established the Sharp Green
Club (SGC) as an organization for planning
and managing a variety of social contribution
activities (mainly environmental volunteer activities). The purpose of the organization is to
encourage all Sharp Group employees to face
the environmental issues surrounding them
and improve their awareness of environmental
preservation.
In fiscal 2004, events such as the Wakakusayama Cleanup Campaign (Nara Prefecture),
which began in 2003, and the Nagai Park
Cleanup Campaign (Osaka Prefecture) became
firmly established as annual events. Furthermore, environmental volunteer activities have
intensified all over Japan; a total of 23,964
employees or approximately 80% of the Sharp
Group’s 31,000-person workforce have participated in SGC activities.
Even overseas, individual sites have carried out
environmental social contribution activities
such as tree-planting and cleanup activities. In
fiscal 2005, Sharp aims to expand its measures
and systems, both in Japan and overseas, to
steadily improve employee awareness of the
environment and CSR.
■ Basic framework of the SGC (Japan)
Promoter
Contents of activities
Whole company
・ Making a framework for activity implementation
・ Activities that involve the entire company
Chief promoter
Deputy chief promoter
Site
Activities for furthering exchanges with local citizens through
Sharp Festivals, tours of plants, etc.
・ Participating in activities hosted by local groups
・ Cleaning areas around sites
・ Other unique activities carried out by individual sites
Head of all divisions/
departments
All employees
Division/
department,
individual
・ Activities by the divisions/departments and individuals
・ Encouraging environmentally conscious lifestyles at home
SGC Executive Office
Environmental Protection Group
Sharp Workers Union Headquarters
Human Resources Group
SGC at each site
Sharp takes part in an internship program in
Japan to support college students career development by giving them on-the-job training.
In fiscal 2004, about 70 liberal arts students
took part in the business internship programs,
while about 40 students took part in the technical internship programs. The students eagerly
tackled their assignments at the frontline of
business, with guidance, advice and support
from Sharp employees.
Blood Donations
Sharp holds blood donations every year at sites
in Japan so that: 1) employees can contribute
to society, 2) Sharp can increase employees
awareness of voluntary activities, and 3)
participants can be informed of blood test
results to use for their own health control. In
fiscal 2004, there were more than 2,600 blood
donations by Sharp employees in Japan. Sharp
actively holds blood donations overseas also, in
the US, China and Malaysia.
■ Blood donations by Sharp Corporation
employees in Japan
(persons)
2,700
Cosponsoring the Asian Pacific Awards
Sharp cosponsors the Asian Pacific Awards
(sponsored by Mainichi Newspapers Co. and
Asian Affairs Research Council) to honor distinguished works on topics including politics,
economics and culture in the Asia-Pacific region. The commendation ceremony of the 16th
Asian Pacific Awards was held in November
2004. Through these awards, Sharp contributes
to the stability and development of the AsiaPacific region.
2,600
2,540
2,571
2000
2001
2,500
2,400
2,634
2,627
2,582
2002
2003
2004
(fiscal year)
Leave Systems to Support Social
Contribution Activities
16th Asian Pacific Awards ceremony
To enhance awareness and make it easier for
employees to contribute to society and participate in volunteer activities, Sharp introduced
the Volunteer Leave System and the Multipurpose Leave System in April 2004 in Japan.
With the Volunteer Leave System, employees
can take up to one year off work to do volunteer activities that constitute a significant
contribution to society. With the Multipurpose
Leave System, employees can receive eight
days of extra paid leave per year that they can
use for helping out in the local community,
taking care of ill or elderly family members, or
other socially valuable activities.
Sharp Environmental and Social Report 2005
68
For Employees/For Local Communities
Level
Approx. 110 Students Accepted
for Internship
Sharp and Society In Pursuit of Becoming a Corporate Group Trusted by Society
For Local Communities
Social Contribution Activities (2)
Examples of activities within Japan
Collaboration with NPOs
Welcoming corporate facility tours
Personnel cooperation for schools
The Solar Systems Group at the Katsuragi site
cosponsored the August 2004 “Nara To-Kae” (sponsored by NPO Nara To-Kae no Kai) and displayed
solar cell lanterns. Sharp’s technology was used
for the festival of light, fantastically coloring the
summer night of the ancient city. Sharp also actively
supports other local NPOs, such as cosponsoring the
“Natural Disaster Youth Summit 2005 in Hyogo”
(sponsored by NPO JEARN) in March 2005.
Sharp hosts popular summer vacation family events
at its Tokyo Branch. In fiscal 2004, Sharp held
programs such as the Solar Cell Seminar, Science
Experiment Class and the Recycle Craft Class,
with a total of 750 people attending the events. At
the Advanced Development & Planning Center in
Tenri, Nara, Sharp provides special programs for
junior high school students and younger children to
tour and experience workplaces. These programs
are used in education and career guidance in the
schools.
Sharp sent instructors from the Yao site to the
Osaka University of Economics and Law to offer
open lectures on the topic of company approaches
to environmental issues. At the Yao site, Sharp
also hosted a lecture as well as a factory tour for a
class of citizens from Yao city under the theme “the
company and the environment.” Since fiscal 2003,
Sharp has sent instructors from its Mie site to local
high schools to present science lectures.
Cleaning up around sites
Joining river cleanups
Hosting Sharp Festivals
In November 2004, Sharp cleaned up the Yaita city
park and neighboring roads in preparation for the
Yaita Takahara Marathon. The day before the event,
approximately 230 employees from the Tochigi
site and their families participated and recovered
garbage in an amount equal to a small truck. Also,
approximately 470 people participated in the Tochigi
site’s “Cherry Blossom Viewing Area Cleanup
Campaign” (at 7 locations) in March 2005. At Sharp,
each site helps to beautify the neighborhood through
activities such as these.
In October 2004, approximately 400 employees
from the Mie site and their families joined the environmental event called “Kushida River Day 2004,”
cleaning up the Matsunaze Seashore down the river.
Also, in the same month, 73 employees and business
partners from Sharp’s Kameyama site cleaned up
the Suzuka River as part of an event to clean up
the main river basin and the gulf coast of Ise in the
Tokai region’s three prefectures.
For over 10 years, cultural and sports festivals have
been held at various Sharp sites for its employees and their families, with local residents being
welcomed to join in. An increasing number of joint
events are now held annually.
Participating in volunteer support programs
Starting the creation of Sharp Forests
Opening wellness facilities to the public
Since May 2002, the Mie site has participated in
volunteer support programs by the Ministry of Land,
Infrastructure and Transport. As a cooperative effort
between labor and management, Sharp has been holding “Environmental Activity Days” regularly every
month to collect garbage and plant flowers along the
main street in front of the site. In fiscal 2004, approximately 1,200 employees and their family members
took part.
The three Sharp sites at Hiroshima, Fukuyama and
Mihara began planting the Sharp Forest in Hachihonmatsu Yoshikawa, Higashi-Hiroshima as a place
for employees to experience reforestation and tree
planting. In November 2004, at the first tree-planting
event, 1,500 trees were planted and 7,500 trees will
be planted in the same region in the next 5 years.
Sharp’s grounds, tennis courts and gymnasiums
are available to local athletic groups and organizations, such as youth baseball and soccer teams, and
women’s volleyball, as well as to Sharp employees.
In fiscal 2004, more than 32,000 people used the
facilities.
69
Sharp Environmental and Social Report 2005
Examples of overseas activities
Award for supporting local educational
activities (SLE, UK)
Cosponsoring the “Walk America” charity
event (SMCA, US)
Lending a hand to New York’s fire
department (SEC, US)
SLE cosponsors youth education programs, accepting students from local Oxford schools and organizing special classes. In 2004, SLE invited more than
150 students from 10 schools and held lectures on
liquid crystal display technology. In January 2005,
the “Oxfordshire Education Business Partnership”
recognized SLE’s efforts with its award for the support of education (Investors in Education Award).
Since 1991, SMCA has cosponsored “Walk America,” a charity walking event. This event aims to raise
monetary donations in support of preventing birth
defects and infantile deaths. In April 2004, around
1,300 people, including 30 SMCA employees and
their family members, took part in the event. SMCA
also donated Sharp products.
SEC lends a helping hand to the New York City
Fire Department by supporting social contribution
activities* for the fire fighters, their family members
and local residents. For example, SEC invites more
than 500 people every year to the SEC-sponsored
games of the New York Mets. In appreciation of this
contribution, the fire department presented SEC with
a commemorative plate in November 2004.
* Social contributions by the New York City Fire Department
include support activities for incumbent and retired fire fighters, their families and those of deceased fire fighters.
Photograph courtesy of CCLRC
For Local Communities
Hosting “Environmental Day” in local
schools (SMM, Malaysia)
Joint management of public daycare
(SEMEX, Mexico)
Local tree planting and cleanups
(SATL, Thailand)
In cooperation with the Mexican Social Security
Institute, SEMEX runs a public daycare at its
plant site. The daycare, the largest in the state of
Baja California, now cares for approximately 270
children. In March 2005, the daycare’s children celebrated “Desfile Primavera” (the beginning of spring)
by marching together dressed as flower spirits and
butterflies.
SATL participates in social contributions in December to commemorate the birthday of the King
of Thailand and to beautify the local areas. In 2004,
some 650 people, including SATL employees and
business partners, took part in a cleanup and memorial tree planting at a nearby university and in the
Hua Sai local community in Chachoengsao. SATL
also printed and distributed pamphlets describing
the safe and energy-saving way of using electric
appliances.
SMM hosted an “environmental day” at local
schools in April 2004 to increase student awareness
of environmental conservation. Some 200 participants, including the students, their parents, teachers
and local residents, as well as SMM employees, took
part in activities such as tree planting and grounds
cleaning. The same day, SMM employees demonstrated how to separate and collect items such as
empty bottles, PET bottles and paper for the purpose
of recycling.
Supporting the victims and regions
of the Niigata Chuetsu and Sumatra
earthquakes
Tree planting with the city administration
and local environmental groups (SEES,
Spain)
SEES cosponsored a tree-planting project with the
local government and environmental groups in the
Rubi district of Barcelona. In November 2004, a
total of 12 employees, including the SEES president,
together with many local residents, planted oaks and
shrubs.
Taking students on the “Visit Europe”
program (SEI, Korea)
Since 2003, SEI has regularly invited university
students to join the “Visit Europe” program as an
activity to expand the global view of young people in
Korea. In 2004, SEI selected 30 university students
from 20,000 applicants to directly experience the
language, culture and customs of Switzerland, Italy,
France and the UK.
Sharp responded swiftly to the Niigata Chuetsu
Earthquake, which occurred on October 23,
2004, delivering 1,000 kerosene heaters and
thermo pots to the area. Sharp also pooled its
efforts between labor and management, making
a donation of approximately 20 million yen.
The Sharp Group (domestic and overseas sites
and companies) also donated approximately
35 million yen to support organizations and
countries affected by the tsunami following the
December 26, 2004 earthquake in Sumatra,
Indonesia.
WEB
Information posted on the Web site
http://sharp-world.com/corporate/eco/report
■ Examples of social contribution activities
Sharp Environmental and Social Report 2005
70
Third-Party Review
71
Sharp Environmental and Social Report 2005
Information Posted on Sharp’s Web Site
Additional information related to this Environmental and Social Report can be found on Sharp’s Web site at:
http://sharp-world.com/corporate/eco/report
Environmental and Social Report Contents
Compiling This Report
Special Feature
The Roots of Sharp s Corporate Social Responsibility (CSR)
A Message to People and the Earth
Outline of the Sharp Group
1 The Challenge of Broadening the Use of Solar Energy
2 The Next Phase of Sharp s LCD Business
3 The Environment, Health and Safety̶ One-of-a-Kind
Products in the Years to Come
Fundamental Orientation and Vision Concerning
the Environment
Major Objectives and Fiscal 2004 Results
Advancing Super Green Management
Sharp and the Environment
How Business Activities Relate to the Environment
Developing Super Green Technologies
Creating Super Green Products and Devices
Achievement of a Super Green Factory
Reducing Greenhouse Gas Emissions
Minimizing and Recycling Waste
Appropriate Management and Reductions in
the Discharge Risk of Chemical Substances
Promoting Risk Management
Environmentally Conscious Logistics and Packaging
Recycling Used Products
Promotion of Environmental Communication
Fulfilling Corporate Social
Responsibilities (CSR)
Sharp and Society
Enhancing Customer Satisfaction
For Customers
For Shareholders
and Investors
For Business Partners
For Employees
Reinforcing Information Security
For Local Communities
See page(s) in the report
1
1
−
−
Financial results
8, 9
Solar power generation systems
13, 14
Decentralized solar power project in the village of Noyon in Mongolia 13, 15
−
Water Oven (Superheated Steam Oven)
24, 25, 26, 27
Plasmacluster
The Sharp Group Charter of Corporate Behavior (full text)
31
The Sharp Code of Conduct (full text)
−
Table of ISO 14001-certified sites (companies)
35
Examples of Sharp s environmental education
36
−
Environmental technology development examples
41, 42
Super Green Product examples
Green Device examples
43, 44
Green procurement assessment items
Data on environmental label products
Environmental efforts at the Mie Plant
45・46
Environmental efforts at the Kameyama Plant
Examples of reductions in greenhouse gases
47
Data on greenhouse gases
Examples of reductions in the discharge of waste
Data on waste
48
Examples of effective water use
Data on water usage
Data on chemical substance management
49
Data on the atmosphere and water quality
Examples of risk communication activities
50
−
Data on recycling of used products
53, 54
Exchanges with local communities
55
Carrying out business with “Sincerity and Creativity” at all times
Sharp Group s efforts to firmly establish CSR
Structuring a PDCA cycle of CSR
57
CSR efforts in sales and marketing activities in Japan
The Sharp Group Charter of Corporate Behavior (full text)
The Sharp Code of Conduct (full text)
Quality guarantee system and quality guarantee activities
59, 60
ISMS efforts and authorization, acquisition of privacy certification
Information security audits
61
Employee security training
Information leak prevention measures using information technology
Improved cooperation with business partners
Information Posted on the Web Site
Sites (companies) covered by the environmental performance data
GRI content index
An Appropriate Return of Profits
■ Investor relations
62
Mutual Prosperity with Suppliers and Dealers
■ Basic Purchasing Principles (full text)
■ SHINE program
■ Commendation system
■ Respect for intellectual property rights
■ Number of Sharp Group employees
■ Sharp Corporation s employee personnel structure
■ Encouraging smoke-free workplaces
■ Accident risk management
■ Examples of social contribution activities
63, 64
A Fair and Rewarding Workplace
A ‘Safety First’ Work Environment
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Social Contribution Activities
Environmental data on Sharp Corporation s production sites
Environment-related history and awards
65, 66
67
69, 70
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Sharp Environmental and Social Report 2005
72
22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
Phone: +81-6-6621-1221 http://www.sharp.co.jp
TM
Printed with VOC (volatile organic
compound)-free ink
Published June 2005
Printed in Japan
Sharp Environmental and Social Report 2005
We’d like to hear your comments about this Environmental and Social Report.
We do our utmost to report our activities to as many people as possible. In the process we improve the quality of these activities through
dialog with our customers and society. Please take a few minutes to fill in the questionnaire on the back of this sheet and fax it to us.
Sharp Corporation
Environmental Protection Group Tel: +81-6-6625-0438 Fax: +81-6-6625-0153
CSR Promotion Department Tel: +81-6-6625-1167
Fax: +81-6-6625-1274
22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan E-mail: [email protected]
Replies to the Questionnaire in the 2004 Environmental Report
We sincerely thank all of you who filled in last year’s questionnaire. Your replies and valuable opinions are summarized
below, along with our subsequent improvements in response to reader comments.
Overall Evaluation
1. Good Points
(1) Dividing the report into two sections: the first section, featuring a “Special Report” and “Highlight,” organized activities typical to Sharp into an easy-to-read
format, and the second section introduced Sharp’s environmental activities in detail, making for a report that was easy to follow.
(2) Many readers were impressed with the “Highlight” article on the Kameyama Plant, which began operation in January 2004, showing how the plant’s
environmentally conscious design and operations are drawing public attention.
(3) Publishing comments from various stakeholders, including customers, business partners and employees was highly rated as creating a sense of
familiarity within the report.
2. Points for Improvement
(1) Some readers felt that there wasn’t enough information on environmental conservation at overseas sites.
(2) While the report was highly rated for its rich variety of information, as well as being easy to understand thanks to improvements in editing, etc.,
some readers commented that it contained too much information.
3. Future Expectations for Sharp
(1) There were many comments from readers looking forward to Sharp enhancing the performance and broadening the use of its environmentally conscious
products. Many readers anticipate further cost reductions in LCD TVs, as well as the establishment of recycling/reuse technologies and higher conversion
efficiency in photovoltaic power systems.
(2) Many readers hope Sharp will continue to step up its environmental conservation efforts as a leader in the industry.
Reader Opinions and Improvements in the 2005 Environmental and Social Report
Q1: How easy to understand was
this report?
0%
0%
50%
Very easy
50%
Easy
Hard to understand
Extremely hard to
understand
■Reader Opinions and 2005 Improvements
• The use of photos and diagrams made
Sharp’s activities easy to understand.
• Activities giving consideration to product
lifecycle left a good impression.
• Placing the “Special Report” and “Highlight” in
the first part of the report was a good idea.
• Sharp’s basic environmental policy, objectives
and achievements were well arranged in an
easy-to-understand style.
• The writing style was easy to understand,
without using too many difficult words.
• The fonts should be bolder and easier to
read.
→This year’s report uses fonts that are
clearer and easier to read.
Q2: How did you feel about the
amount of information in this
report?
Plenty of information
0%
0%
Enough information
Could have been more
Not enough
22%
78%
■Satisfactory Points
• Many comments from business partners and
employees
• Objectives and achievements indicated by
fiscal year
• Many visuals, such as graphs
• Environmental actions shown at different
stages in a product’s lifecycle
■Unsatisfactory Points and 2005
Improvements
• Not enough reporting on overseas efforts
• Not enough material in the social report
section
→This year’s report includes the sections
“For Shareholders and Investors” and
“For Business Partners” as an
enhanced social report. The title has
been changed accordingly to
“Environmental and Social Report.”
• Not clear whom the information is for
Q3: What information about Sharp
did you find most impressive
in this report?
(total number of respondents)
Efforts Related to Product
A Message to People
4
Lifecycle—Manufacturing
and the Earth
Sincerity and Creativity—
Efforts Related to Product
The Wellspring that
6 Lifecycle—Logistics &
Underlies Sharp
Packaging
Efforts Related to Product
7
Special Report
Lifecycle—Recycling
10 Social Report
Highlight
Environmental Vision
6 Economic Report
Environmental
8 Performance Data
Sustainability Management
Efforts Related to
5 Third-Party Review
Product Lifecycle—
Planning & Design
8
3
8
6
2
2
2
■Reasons
• Highly impressed with the Kameyama Plant’s
“Super Green Factory” efforts (Highlight).
• Reflects voices of customers and business
partners (Highlight).
• Sympathized with Sharp’s corporate policy
(Sincerity and Creativity—The Wellspring that
Underlies Sharp).
• Thought that Sharp is carrying out its
activities in a sincere manner, the way
manufacturers should (Efforts Related to
Product Lifecycle).
• Efforts in recycling were easy to understand
(Recycling).
• Was a good idea to include CSR in the Social
Report.
Q4: Please give us your
comments on this report or
on Sharp’s environmental
activities.
• Sharp should publicize its environmental
conservation efforts more.
• More of Sharp’s unique activities in
environmental sustainability management
should be included.
→This year’s report details Sharp’s
corporate vision of becoming “a zero
global warming impact company by
2010” and advancing “Super Green”
management.
• Too much information.
→This year, we narrowed down the
contents of the report. Detailed
activities, performance data, etc. are
posted on Sharp’s Web site.
Q5: What do you expect from
Sharp’s future activities?
■Reader Opinions
• Development of environmentally conscious
products
• Further cost reductions in LCD TVs
• Establishment of recycling/reuse technologies
for LCD TVs
• Development of high-conversion-efficiency
solar cells, work toward further broadening
the use of solar energy
• Offering new lifestyles appropriate to the “era
of the environment” through manufacturing
products
Please fill in the following questionnaire and fax it to:
FAX
Environmental Protection Group, Sharp Corporation +81-6-6625-0153
Q1: How easy to understand was this Environmental and Social Report?
(1) Very easy (2) Easy (3) Hard to understand (4) Extremely hard to understand
Please explain
Q2: How did you feel about the amount of information in this report?
(1) Plenty of information (2) Enough information (3) Could have been more (4) Not enough
There was sufficient information on the following topics
There should have been information on the following topics
Q3: What information about Sharp did you find most impressive in this report?
(1) A Message to People and the Earth (2) Special Feature 1 The Challenge of Broadening the Use of Solar Energy
(3) Special Feature 2 The Next Phase of Sharp’s LCD Business (4) Special Feature 3 The Environment, Health and Safety
—“One-of-a-Kind” Products in the Years to Come (5) Fundamental Orientation and Vision Concerning the Environment
(6) Major Objectives and Fiscal 2004 Results (7) Advancing Super Green Management (8) How Business Activities Relate to the Environment
(9) Developing Super Green Technologies (10) Creating Super Green Products and Devices (11) Achievement of a Super Green Factory
(12) Reducing Greenhouse Gas Emissions (13) Minimizing and Recycling Waste (14) Appropriate Management and Reductions in the Discharge
Risk of Chemical Substances (15) Promoting Risk Management (16) Environmentally Conscious Logistics and Packaging
(17) Recycling Used Products (18) Promotion of Environmental Communication (19) Fulfilling Corporate Social Responsibilities (CSR)
(20) For Customers (21) For Shareholders and Investors (22) For Business Partners (23) For Employees (24) For Local Communities
Please explain why
Q4: Did you see the information posted on Sharp’s Web site?
(1) Yes (2) No (3) Didn’t know about it
Items you viewed
Q5: How do you feel about information disclosure using both a printed report and the Web site?
(1) Favorable (2) Not favorable (3) Neither (4) Don’t know
Please explain why
Q6: Please give comments on this report or on Sharp’s environmental and social activities.
Q7: What do you expect from Sharp’s future activities?
Q8: Which of the following would best describe you?
(1) Customer (2) Shareholder, investor (3) Someone who does business with Sharp (4) Person in charge of environmental matters at your
company (5) Person in charge of CSR at your company (6) NGO or NPO member (7) Member of government, civil servant
(8) Member of research or educational institution (9) Student (10) Media member (11) Resident living near a Sharp site
(12) Sharp employee or family member (13) Other( )
Q9: How did you hear about this report?
(1) Sharp Web site (2) Other Web site( ) (3) Newspaper( ) (4) Magazine( )
(5) Seminar( ) (6) Exhibition( ) (7) Sharp employee( ) (8) Others( )
Q10: Please write any other comments, suggestions or wishes here.
Thank you for your cooperation.
Sharp Environmental and Social Report 2005
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