2006 Environmental and Social Report

2006 Environmental and Social Report
Environmental and Social Report
2006
About the Cover
Environmental and Social Report
2006
Crystalline, thin-film, see-through
photovoltaic modules installed on
the wall of Kameyama Plant No. 2.
The modules reduce lighting costs
in a room by allowing in moderate
lighting and cool the room by
blocking direct sunlight in summer.
Contents
Compiling This Report
Concept of CSR (Corporate Social Responsibility) ................ 2
A Message to People and the Earth ....................................... 3
Management System .............................................................. 5
Outline of the Sharp Group ..................................................... 7
■ Organization
Special Feature
Sharp’s Innovation in Technology and
Manufacturing Opens the Door to a
New Era ........................................................................... 9
This Environmental and Social Report consists of four sections.
The first section is a special feature that introduces Sharp’s fundamental
policy of contributing to society by making products in three business
areas: calculators, LCDs and photovoltaic power generation. The
“Highlights” section focuses on the main environmental and social topics
in fiscal 2005.
The “Sharp and the Environment” section covers the policies,
objectives and achievements of Sharp’s environmental efforts. “Sharp
and Society” is divided into sections that outline what Sharp is doing for
each type of stakeholder.
2005 Highlights
■ Links to the Sharp Web Site
SMF in France Achieves Super Green Factory Status ....... 15
2 Plant-Based Paint Put to Practical Use .............................. 17
3 Affirmative Action for Women Spreads .............................. 19
4 SEMEX in Mexico Contributes Further to the Local
Community ......................................................................... 21
Topics: R-CATS Small-Group Activities .................................. 23
■ Period and Items Covered
1
Sharp and the Environment
Policies, Objectives and Achievements Concerning the
Environment ...................................................................... 25
Advancing Super Green Management ................................... 27
Developing Super Green Technologies .................................. 31
Creating Super Green Products and Devices ........................ 33
Building Super Green Factories ............................................. 35
Reducing Greenhouse Gas Emissions ................................... 36
Minimizing and Recycling Waste ............................................ 37
Effectively Managing Chemical Substances, Conducting
Risk Management ............................................................. 38
Environmentally Conscious Logistics and Packaging ............ 39
Developing Super Green Recycling ........................................ 40
Promoting Environmental Communication ............................. 41
Sharp and Society
For Customers
Enhancing Customer Satisfaction, Ensuring Quality
and Safety ......................................................................... 43
Reinforcing Information Security ............................................ 45
For Shareholders and Investors
Appropriate Return of Profits and Information Disclosure ..... 46
This report focuses on the main points 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/report2006). Items that are covered on the Web site are listed at the
bottom of the pages in this report. The last page also lists the items
covered on the Web site.
Period Covered: Fiscal 2005 (April 2005 to March 2006)
However, some actual results prior to this period, as well as subsequent
plans, goals and policies will also be included.
Coverage: Environmental and social 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.
Production sites (companies)
Non-production sites (companies)
40 (17 domestic, 23 overseas)
32 (10 domestic, 22 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
For Business Partners
Mutual Prosperity with Suppliers and Dealers ....................... 47
July 2007 (published annually since 1999)
For Employees
Creating a Fair, Positive and Progressive Workplace ............. 49
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]
For Local Communities
Social Contribution Activities as a Corporate Citizen ............ 51
Third-Party Review ................................................................. 53
Information on Sharp’s Web Site ............................................ 54
■ Inquiries
Information on Web site
■ Sites (companies) covered by the environmental performance data ■ GRI content index
http://sharp-world.com/corporate/eco/report2006 ■ Calculation standards for environmental performance indices
1
■ Environmental and Social Report 2006
Concept of CSR (Corporate Social Responsibility)
Sharp Contributes to Society through Its
Manufacturing and Technology-Oriented
Business
“Make products that others want to imitate.” These words,
spoken by Sharp founder Tokuji Hayakawa, embody Sharp’s
management concept. As a manufacturer, Sharp contributes
to society by being the first to make products that meet the
needs of a new era. Successive generations of Sharp
leaders have, in their own way, pursued this concept by
making products that contribute to society and in the
process created a corporation that is known and trusted by
society.
In 1973, Sharp clarified the unchanging spirit of its founder in
the company’s business philosophy and business creed. The
business philosophy states that Sharp aims for mutual
prosperity with stakeholders—the foundation of CSR
today—by contributing to the culture, benefits and welfare of
people throughout the world. The business creed calls for
“Sincerity and Creativity” and all employees must hold to it
and follow it in order to realize the business philosophy.
This report details the many ways that Sharp is fulfilling its
CSR. Each of these efforts is an index for gauging how well
Sharp conducts business according to its core belief of
“Sincerity and Creativity.”
The goal that Sharp aims at through its CSR efforts is
nothing less than realizing the business philosophy through
business activities. Having a “gene of creativity” since its
foundation, Sharp will continue to propose one-of-a-kind
products and new lifestyles, as a corporation that is trusted
by all.
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.
■ Achieve the tenets of the business philosophy by promoting “Sincerity and Creativity” in all business practices
Sharp’s Business Activities
Sales
Realization of Business Philosophy
Service
Production
■ Perspective of social contribution through
business activities
“Contribute to the culture, benefits and
welfare of people throughout the world”
Business creed
Dedicated to
two principal ideals
Planning
Sincerity and
Creativity
R&D
Design
Procurement
■ Perspective concerning employees
“Our corporation to grow hand-in-hand with
our employees”
■ Perspective concerning stakeholders
“Prosperity is directly linked to the prosperity
of the entire Sharp family”
• The business creed is the central axis of all business activities.
• “Sincerity” means a working attitude mindful of what will offer genuinely useful solutions and happiness to everyone.
• “Creativity” means a working attitude not content with the way things are. An attitude which always seeks to add value, and to make efforts to innovate
and improve.
Environmental and Social Report 2006 ■
2
A Message to People and the Earth
Contribute to a Sustainable Society
by Making Environmentally Conscious Products
Katsuhiko Machida
President, Sharp Corporation
Recognized with an IEEE Milestone
Aiming to make calculators anyone could use, Sharp
conducted tireless R&D that led to the world’s first all
transistor calculator in 1964. Some years later, Sharp
engineers used this passion for originality to successfully
develop the world’s first IC/LSI calculators, and
pocketsize LCD calculators. New technologies that
came out of this development process, such as LSIs,
LCDs and solar cells, have contributed to the
advancement of the electronics industry. In December
2005, these achievements were recognized as the IEEE
named Sharp’s calculator development an IEEE
Milestone.*
Such honors remind Sharp of its responsibility to
contribute to society, a task it will carry out by working
even harder to make products for future generations.
Making products with a focus on
environmental consciousness
Today’s product development and manufacture must be
carried out with a commitment to the environment. No
matter how convenient the products, they are of no use
if they harm the environment and human health.
Since 1998, Sharp has done its utmost to improve the
environmental performance of products, efforts that the
company has further expanded into the area of devices
since 2004.
In fiscal 2006, Sharp started full-scale operation of a
system to assess the environmental impact over the life
3
■ Environmental and Social Report 2006
cycle of products and devices. This system works handin-hand with the incorporation of environmentally
conscious design into the product-making process.
Aiming to become an environmentally
advanced company
In fiscal 2004, Sharp set a medium-term goal of
becoming an environmentally advanced company and is
taking environmentally conscious action in all business
activities to achieve this goal.
Sharp is working to minimize the environmental impact
of its worldwide production facilities. Factories that meet
Sharp’s strict standards for environmental protection are
certified as Green Factories and Super Green Factories.
As of fiscal 2004, all of Sharp’s domestic production
facilities had achieved Green Factory status. Of special
note are the large-scale LCD production facilities in
Kameyama and Mie, whose thorough environmental
conservation measures have made them Super Green
Factories. With the construction of Plant No. 2, the
Kameyama Plant is adding more advanced
environmental technologies, like a 5-MW photovoltaic
power system, the world’s largest, and 1-MW fuel cells,
the largest of their kind in Japan.
Among overseas factories, eight out of 22 bases achieved the standards for Green Factories in fiscal 2005.
Special mention goes to the office equipment manufacturing plant in France, which has become the first overseas factory to achieve the status of Super Green Factory. Sharp plans to make all of its group factories,
including those overseas, Green Factories by fiscal
2007.
But Sharp’s environmental action covers the entire
spectrum: other efforts include the development of
state-of-the-art environmental technologies, the
introduction of a proprietary environment management
system, and the provision of environmental training for
all employees.
Achieving zero global warming impact
by 2010
Sharp recognizes global warming as one of the most
pressing environmental issues.
To actively play a part in tackling this problem, in 2004
Sharp defined its corporate vision as “zero global
warming impact by 2010.” This concept limits to the
greatest extent possible the amount of greenhouse gas
emissions resulting from business activities, while at the
same time, significantly reducing greenhouse gas
emissions due to the energy-creating effects of solar
cells and to the energy-saving effects of new products
manufactured by Sharp. The amount of greenhouse
gas emissions reduced is to exceed the amount emitted
by fiscal 2010.
Sharp’s production of solar cells totaled 428 MW in
2005 (a 32% increase from the previous year), recording
the world’s largest volume consecutively for the sixth
year in a row. Sharp will further expand solar cell
production to provide clean energy to the world and
achieve its corporate vision.
Earning the trust of society through CSR
The key to creating a wide range of know-how, and not
just the core technologies of products, lies in fostering
human resources. To enable all employees to fully
demonstrate their abilities, Sharp is actively carrying out
a range of human resource development programs.
These include the Leadership Program, which nurtures
future managment personnel, and Affirmative Action,
which creates better opportunities for female
employees.
Sharp will boost its effort on the corporate social
responsibility (CSR) front by strengthening ties not only
within the Sharp Group but also with business partners,
suppliers and all other companies involved in Sharp
business processes.
Since its foundation, Sharp has contributed to society
by making never-before-seen products that meet the
needs of the next generation and by creating totally new
markets. Sharp will continue to fulfill its social mission in
obedience to its business creed of “Sincerity and
Creativity.”
We look forward to hearing your frank opinions.
June 2006
* IEEE Milestone: Established in 1983 by the IEEE, the world’s largest
institute of electric and electronics engineers, to honor important
historic achievements in electrical and electronics technologies and
their relevant fields that have contributed to the betterment of society.
Environmental and Social Report 2006 ■
4
Management System
In an Effort to Further Strengthen Manufacturing and
Technological Competency, Sharp is Committed to Making Speedy
Managerial Decisions and to Enhancing Management Quality
While further strengthening the Director/Corporate Auditor system through strict observance of business
ethics and legal compliance, reinforcement of internal control, and enhancement of audit functions,
Sharp will enhance its corporate governance and management system.
Basic Concept of Corporate Governance
Business activities of Sharp are clearly bounded by the
development, production and sales of products as well
as devices. Each area is highly specialized and at the
same time, there is strong interrelation between them.
Sharp believes that when all directors with operational
responsibilities at the division level make decisions after
consulting with one another, they can clarify their
reciprocal managerial responsibilities and execute
business responsively and effectively. Also, Sharp is of
the opinion that it enhances management functions by
reciprocal checks among the directors.
The fact that three of Sharp’s four corporate auditors are
outside auditors enhances operational soundness.
Sharp intends to further strengthen its current
Director/Corporate Auditor system, which allows
management and R&D and manufacturing divisions to
work closely on expanding business, to enhance
corporate governance.
Enhancement of
Corporate Governance System
To enhance the corporate governance system and
ensure transparency and soundness in management,
Sharp has taken the following actions. In particular,
regarding the increasingly important matter of internal
control, with consideration of Japan’s Corporate Law
which went into effect in May 2006, Sharp has
established the Internal Control Committee, an advisory
panel to the Board of Directors.
• Reduced the term for directors from two years to one year
(June 2003)
• By unifying internal audit departments, Sharp established
the Internal Audit Division under the supervision of the
responsible vice president in order to keep auditing
separate from the viewpoint of independence from
business execution departments (April 2006)
• Introduced a plan to prevent large-scale purchases of
Sharp Corporation shares (Anti-Takeover Plan) (April 2006)
• Established the Internal Control Committee as an advisory
panel to the Board of Directors (May 2006)
• Established the Advisory Board to obtain a wide range of
opinions and proposals from well-informed outside
experts in order to assist in management decisions (July
2006)
The Sharp Group Charter of Corporate
Behavior and the Sharp Code of Conduct
In 1998, Sharp established standards of conduct to
guide all employees to fulfill Sharp’s business philosophy
and business creed.
In May 2005, to make legal compliance and business
ethics top priorities and to boost Sharp’s CSR
performance, the standards of conduct were revised for
the second time and split into two documents: the Sharp
Group Charter of Corporate Behavior, established as the
principles of Sharp’s corporate behavior; and the Sharp
Code of Conduct, as the standards of conduct for all
directors and employees.
These two documents apply to group companies around
the world as the common standards of the Sharp Group.
Promoting CSR and BRM Activities
Sharp believes BRM (business risk management), which
prevents violations of laws and loss risks, while helping
the company quickly adapt to changing business
environments, is indispensable in business management.
That is why the company pursues both CSR and BRM
activities in correlation between them.
Sharp holds meetings of the CSR/BRM Committee to
discuss and check progress in policies and action plans.
Held twice a year, these meetings are attended by a
Corporate Senior Executive Vice President (Chief General
Administration Officer), all group general managers and
all general managers of the functional groups.
Sharp has also established the CSR Promotion
Department under the supervision of the corporate
director in charge of Management Planning in order to
plan and implement CSR/BRM measures for the whole
Sharp Group.
R-CATS* are small-group activities in which all employees
address and solve common issues in their everyday work
from the viewpoint of CSR. Introduced to all Sharp
departments, from production and quality to product
planning and technical, right down to sales, procurement
and administrative departments, R-CATS activities foster
CSR awareness across the entire Sharp Group.
* R-CATS: Revolution Creative Action Teams. See also page 23.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ The Sharp Group Charter of Corporate Behavior (full text) ■ The Sharp Code of Conduct (full text)
5
■ Environmental and Social Report 2006
■ Diagram of Corporate Governance/
Internal Control System
Strict Business Ethics and Legal Compliance
Business ethics and legal compliance are the minimum
social responsibilities for any corporation.
Shareholders and stakeholders
Appropriate disclosure, provision of information
President
Ensure business is carried
out appropriately
Business execution
Self-audit
Accounting audit
Accounting/business audit
Auditors
Accounting auditors
Self-audit
Supervision,
creation of system of
internal control
Directors
Sharp will continue to promote activities to ensure strict
legal compliance at both domestic and overseas bases.
• Manager meetings and employee training sessions at all
departments on the Sharp Group Charter of Corporate
Behavior and the Sharp Code of Conduct (fiscal 2005)
Support, guidance
Domestic/overseas subsidiaries
Business execution
Board of Corporate Auditors,
Corporate Auditors
Self-audit
Support, guidance
Business execution
Functional groups
Accounting/business audit
Ensure business is carried
out appropriately
Business groups,
sales and marketing groups*
Internal audit
Internal audit function: Internal Audit Division
Ensure business is carried
out appropriately
In Japan, Sharp Corporation and its domestic
subsidiaries have appointed a Chief of Legal Affairs at
each business group and company to prevent violations
of laws or regulations in the course of business. To raise
legal awareness and ensure compliance with the law,
Sharp and its subsidiaries have a variety of continuing
education programs in Japan (described below).
Formulation/operation of internal control system
Internal control promotion function: CSR Promotion Department
Formulation of basic policies of internal control,
creation and supervision of internal control system
• Job-level-specific training [managers and new employees,
etc.] (every year)
• Training and online lectures in specialized fields [on laws
related to antimonopoly, subcontracting, intellectual
property rights, export control, labor, etc.] (held when
necessary)
• e-learning for all employees:
- Environmental awareness (fiscal 2004)
- Personal information protection (fiscal 2004)
- CSR (fiscal 2005)
- Information security and personal information protection
(fiscal 2005)
- Legal affairs and compliance (fiscal 2006)
Board of Directors
Deliberation and submitting of basic policies of internal control system,
basic policies of internal audit and internal audit planning, etc.
Internal Control Committee
*Also responsible for directing and administrating the assigned subsidiaries
Preventing Unlawful Grants and Expenditures
Sharp has a principle of fair and open management. The
Sharp Group Charter of Corporate Behavior and the
Sharp Code of Conduct contain the provisions to strictly
prohibit corrupt behavior such as extortion and bribery,
and require that donations are handled in a proper
manner.
For donations in Japan, Sharp prevents illegal payoffs
and expenditures through a system of compulsory
examinations by the Donation Examination Committee
for monetary donations and other cases of expenditure.
Consultation Hotline for Compliance Issues
Sharp Corporation and its domestic subsidiaries have
established a hotline where employees can report
compliance problems and receive consultation.
The hotline is also open to temporary staff and
employees of business partners who work at Sharp
business sites. However, in line with the spirit of the
Japanese law to protect those who disclose information
for public interests, enforced on April 1, 2006, Sharp has
opened this hotline to employees of business partners
who work outside Sharp sites.
Sharp clearly stipulates that there will be no unfavorable
treatment or disadvantage against people who report
compliance violations or seek consultation.
■ Sharp Group’s efforts to firmly establish CSR ■ CSR efforts in sales and marketing activities in Japan
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Respect for intellectual property
Environmental and Social Report 2006 ■
6
Outline of the Sharp Group
A Fusion of Products and Electronic Components
Sharp’s business activities comprise “Consumer/
Corporate Profile
Information Products” that are actual consumer
Name
Head Office
Representative
Founded
Operations
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.
Sharp Corporation
22-22, Nagaike-cho, Abeno-ku, Osaka, Japan
Katsuhiko Machida, President
September 15, 1912
Manufacture and sales of audio/video,
communication and information equipment,
home appliances, LSIs, LCDs, other
electronic components
Capital Stock
204,675,518,238 yen
Number of Employees* 46,872 (29,484 in Japan; 17,388 overseas)
As of March 31, 2006
* Sharp Corporation and its consolidated subsidiaries
■ Main Products
Audio/video and communication equipment
AQUOS LCD color TV
Mobile phones
LCD color TVs, color TVs, TV/VCR combos, projectors, digital broadcast
receivers, DVD recorders, DVD players, VCRs, 1-Bit digital audio
products, MD players, CD component systems, MD pickups, facsimiles,
telephones, mobile phones, PHS terminals
Home appliances
Water Oven (superheated steam oven)
Air conditioner
Information equipment
■ Environmental and Social Report 2006
LED driver (left), illumination sensor (right)
Two-way viewing-angle LCD
Switchable viewing-angle LCD
• Reflecting the LCD in a mirror shows that
one user sees TV images from the right
while another can see an Internet Web
site from the left
• Reflecting the LCD in a mirror shows that
the user sees the PC screen from directly
in front while someone sitting on the right
or left sides cannot see the same screen
TFT LCD modules, Duty LCD modules, System LCD modules,
EL display modules
Other electronic components
Digital copier/printer
PCs, personal mobile tools, mobile communications handsets, electronic
dictionaries, calculators, POS systems, handy data terminals, electronic
cash registers, LCD color monitors, information displays, PC software,
digital copier/printers, electrostatic copiers, PC peripherals, supplies for
copiers and printers, FA equipment, ultrasonic cleaners
7
CMOS camera module
Flash memories, combination memories, CCD/CMOS imagers,
LSIs for LCDs, microcomputers
LCDs
Refrigerators, microwave ovens, superheated steam ovens, air
conditioners, washing machines, drum-type washer/dryers, vacuum
cleaners, kerosene heaters, electric heaters, air purifiers, dehumidifiers,
small cooking appliances
Internet AQUOS PC TV
LSIs
Photovoltaic module for residential use
Laser diode
Hologram laser
Electronic tuners, RF/infrared data communication units, network
components, components for satellite broadcasting, laser diodes,
hologram lasers, DVD pickups, optoelectronics, regulators, switching
power supplies, solar cells, LEDs, analog ICs
Increasing Corporate Value by Strengthening One-of-a-Kind Strategy
Fiscal 2005 Financial Results
Outlook for Fiscal 2006
Sharp took assertive initiatives through the introduction of one-of-akind products and through the development of proprietary devices
which support the creation of these one-of-a-kind products. The
company consistently focused on making highly distinctive products
and devices and thus realized higher profitability.
In an effort to achieve further growth, Sharp is strengthening its oneof-a-kind strategy, while working to improve profitability and get the
maximum value out of the company.
In the Consumer/Information Products business, Sharp worked to
further expand sales of LCD color TVs. In anticipation of the fullscale arrival of the digital high-definition TV era, Sharp expanded its
lineup of full-spec high-definition LCD TVs and worked toward
expanding sales worldwide. Other efforts included an enhancement
of unique products, such as mobile phones equipped with original
cutting-edge devices.
In the Electronic Components business, Sharp strived to further
expand LCD business. The company expanded production capacity
at Kameyama Plant No. 1 to meet the growing demand for large-size
TV panels. Furthermore, in order to ensure a more stable supply,
Sharp started construction of Kameyama Plant No. 2. As for
photovoltaic power systems, Sharp continued to take aggressive
measures to expand the business, including the commencement of
mass production of thin-film photovoltaic modules.
These efforts resulted in record highs in net sales, operating income
and net income in fiscal 2005 on a consolidated basis.
In the Consumer/Information Products business, Sharp will work to
further improve the competitiveness of LCD color TVs. This is to be
accomplished through globally expanding its lineup of full-spec highdefinition models. Sharp will also introduce new technologies which
enhance image quality and performance, along with establishing a
state-of-the-art global production system. One-of-a-kind products in
other business areas will also be upgraded. These include original
cutting-edge mobile phones corresponding to new services in Japan.
In the Electronic Components business, Sharp will engage in
enhancing its line of original devices through the following measures.
To further expand the LCD business, the company will realize a
stable supply of panels for LCD TVs with the revolutionary
productivity of Kameyama Plant No. 2. Other measures include
boosting sales of panels for mobile equipment, including System
LCDs. In Photovoltaic Power Systems, Sharp will introduce a wide
variety of product lineups, increase production capacity and
implement technological innovation.
In addition to these efforts, Sharp will continuously promote value
engineering and seek innovation in production technologies in order
to achieve further growth.
■ Net sales, operating income and net income (consolidated)
Net sales (billions of yen)
■ Principal financial performance
indicators (consolidated)
Operating income, net income (billions of yen)
3,000
2,797.1
2,539.8
2,400
2,257.2
(%)
200
10
160
8
120
6
80
4
40
2
0
0
8.4
163.7
151.0
7.9
2,003.2
1,803.7
1,800
6.6
121.6
99.4
88.6
76.8
73.5
1,200
3.6
60.7
2.9
600
32.5
1.2
0.6
11.3
0
2001
■■
Net sales
■■
2002
Operating income
■■
2003
Consumer/
information products
62.1%
■ Fiscal 2005 net sales by region
(consolidated)
Overseas
50.1%
LSIs
4.9%
Asia
7.7%
Audio/video and
communication
equipment
39.0%
3.6
1.6
2002
2003
2004
2005 (fiscal year)
●— ROE (return on equity) ●— ROA (return on asset)
Other
electronic
components
10.4%
LCDs
22.6%
2001
2005 (fiscal year)
Net income
■ Fiscal 2005 net sales by product group
(consolidated)
Electronic components
37.9%
2004
3.4
Domestic
49.9%
■ R&D expenditures (consolidated)
(billions of yen)
185.2
162.9
150
144.7 152.1
8.0
Information
equipment Home
15.1% appliances
8.0%
The Americas
16.1%
12
175.5
Other
8.8%
Europe
17.5%
(%)
200
Japan
49.9%
7.6
9
7.2
100
6.9
6.6
3
50
0
■■
6
2001
2002
R&D expenditures
2003
2004
0
2005 (fiscal year)
●— Ratio to net sales
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Financial results
Environmental and Social Report 2006 ■
8
Special
Feature
Sharp’s Innovation in Technology and
Manufacturing Opens the Door to a New Era
Passed down through successive generations, the company’s business creed of “Sincerity and
Creativity” has allowed Sharp to make products that create new demand and open the door to a new
era. This section surveys Sharp’s past and future with examples taken from three business areas:
calculators, LCD and photovoltaic power generation.
Commemorative plaque presented by the IEEE (behind); four models of Sharp desktop electronic calculators recognized as an IEEE Milestone
(From left) CS-10A all-transistor calculator, CS-16A IC calculator, QT-8D LSI calculator and EL-805 LCD calculator
Sharp’s Pioneering Achievements in
Electronic Calculators
Recognized as an IEEE Milestone
This IEEE Milestone is
confirmation once again of
the revolutionary Sharp
technology that led to the
growth of the LSI industry
The IEEE*1, the world’s largest institute of electrical and
electronics engineers, established the IEEE Milestone
program in 1983 to honor significant achievements in
electrical and electronics engineering that have
contributed to the betterment of society. Currently there
are 65 Milestones around the world, including Volta’s
Electrical Battery Invention and the Fleming Valve.
In December 2005, Sharp’s development of desktop
electronic calculators during the years from 1964 to
1973 was recognized as an IEEE Milestone. This is the
fifth such IEEE Milestone for Japan*2, and the first such
recognition in the field of information devices.
Isao Shirakawa, Ph.D.
Professor & Dean
Graduate School of Applied Informatics
University of Hyogo
Professor Emeritus of Osaka University
Following the commercialization of the world’s first alltransistor-diode desktop calculator (in 1964), Sharp
introduced the world’s first electronic calculators
incorporating ICs and LSIs (in 1967 and 1969) and a
pocketsize LCD electronic calculator (in 1973) that used
CMOS-LSI circuitry. These successes in evolving
increasingly compact, power-efficient calculators have
expanded the use of calculators worldwide.
9
■ Environmental and Social Report 2006
Worked with Sharp in the initial
development of electronic
calculators
Sharp’s development of electronic calculators gave the world
revolutionary developments—the adaptation of CAD to LSI
design and the development of a FORTRAN compiler for logic
simulation—that led to progress in the LSI industry.
Sharp engineers were so intensively devoted to their research
as to be unaware that their technologies had become the first
of a kind in the world. The recognition of Sharp’s electronic
calculators as an IEEE Milestone is a reaffirmation of the
significance of these technological innovations.
*1 IEEE: The Institute of Electrical and Electronics Engineers, Inc., the
world’s largest non-profit, professional association of electrical and
electronics engineers. Headquarters in the US.
*2 In Japan, the Directive Short Wave (“Yagi”) Antenna (1995), the
Mount Fuji Radar System (2000), the Tokaido Shinkansen (“Bullet
Train”) (2000) and the Electronic Quartz Wristwatch (2004) have been
recognized as IEEE Milestones. Sharp’s electronic calculator is the
fifth honor for Japan.
Sharp’s one-of-a-kind product history
1915
Tokuji Hayakawa invents the Ever-Sharp Pencil
It was the world’s first pencil with a core that could be
constantly pushed out to keep the pencil “sharp” at all
times. Called the Ever-Ready Sharp Pencil, this
invention is the origin of the company name Sharp.
1925
Japan’s first crystal radio set
After the Great Kanto Earthquake, Sharp founder
Hayakawa moved to Osaka to rebuild his company
where he successfully assembled a crystal radio set.
1953
Japan’s first TV
In 1931, Sharp began research into TVs. The company
built Japan’s first prototype in 1951 and started
marketing TVs in January 1953.
1963
Photovoltaic module
Began development of solar cells in 1959 and became
the first company to mass-produce them in 1963.
1992
LCD Viewcam video camera
The Viewcam was the world’s first video camera that
used an LCD screen instead of the conventional
viewfinder, making it easier to watch the scene as it was
being recorded.
2000
Plasmacluster Ion air purifier
Developed the world’s first air purification technology
utilizing Plasmacluster Ions, which eliminates airborne
mold and other harmful substances.
2001
AQUOS LCD color TV
Marketed as the TV for the 21st century, the AQUOS is
thin, light, energy-efficient, space-efficient, resourceefficient and has a long service life.
2004
Water Oven (superheated steam oven)
A cooking appliance applying the new idea of “roasting”
with water, the Water Oven uses 300°C superheated
steam and offers healthy food.
Development of Electronic Calculators
Gave Birth to Today’s IC, LCD and
Solar Cell Businesses
The technology that came out of the development of
electronic calculators has greatly advanced the
electronics industry. For example, the MOS-LSI
electronic calculator in 1969 was the first consumerbased application of LSIs and provided the momentum
to create today’s huge LSI industry. Moreover, the LCDs
used to make compact, energy-efficient electronic
calculators evolved into today’s LCD TVs, while the solar
cells used to power the calculators have evolved into
today’s photovoltaic power systems.
Sharp founder Tokuji Hayakawa’s favorite
phrase—“make products that others want to
imitate”—is a call to lead the world in creating products
the next era will demand, mainstream products that
other companies will also want to produce. The
development of electronic calculators, which was
recognized as an IEEE Milestone, embodies
Hayakawa’s spirit of making products.
The Evolution of LCD Technology
Drives Today’s Information Society
After Sharp engineers succeeded in applying liquid
crystals to displays in electronic calculators in 1973,
their next goal was the development of an LCD wallmounted TV. They proceeded from simple numeric and
alphanumeric read-out to image displays, then from
monochrome to color displays. Next still images evolved
into full-motion video, and from small screens into large
ones. To realize their dream of a wall-mounted TV, the
engineers pursued innovation in LCD with tenacity and
creativity.
Their dream was realized with the development of the
AQUOS LCD color TV. Made for today’s environmentally
conscious consumers, the AQUOS is energy-efficient,
space-efficient and resource-efficient. Sharp has
designed the AQUOS for superb overall environmental
performance, easy to recycle and manufactured with
environmentally friendly components and materials.
With its growing use in a variety of equipment such as
notebook PCs, mobile phones, car navigation systems
and digital cameras, LCDs have created a world of
mobile products well beyond the imagination of those
original Sharp engineers. As shown by its wide range of
applications—in highly detailed monitors for telemedical
diagnosis, or in information displays for use in every type
of vehicle from cars to airplanes—LCDs have been
playing increasingly important roles in the advancement
of our information society.
Develop LCDs that make
cars safer
Hideki Yakushigawa
Department General Manager
Engineering Department II
Mobile LCD Design Center
Mobile Liquid Crystal Display Group I
In charge of development of
automotive LCD modules
To develop automotive LCD modules, a company needs
more than just state-of-the-art technology: it needs to
focus its collective strength as a manufacturer, including its
quality and support functions. LCDs have recently been
used to display a driver’s blind spot. We expect to soon
see LCDs that offer integrated displays never before
possible for automotive use. By developing increasingly
reliable LCD modules, we plan to provide drivers and
passengers with the peace of mind that comes from
driving in safety and comfort.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Sharp’s electronic calculators recognized as an IEEE Milestone
Environmental and Social Report 2006 ■
10
Plant No. 2
Plant No. 1
The Kameyama Plant, a Super Green Factory, introduces more advanced environmental technologies with the construction of Plant No. 2
The 5,150-kW system is the world’s largest photovoltaic power generation installation on a building
世界で初めて、液晶パネルの生産から液晶テレビの組み立てまでの一環生産を実現した「亀山工場」。
環境負荷を極限まで低減したスーパーグリーンファクトリー。
A cogeneration system produces
about one-third of the electricity
used in the whole plant
A 1,000-kW fuel cell system, Japan’s largest
Drainage facilities recycle all process
wastewater
■ Environmentally conscious AQUOS
Made for today’s environmentally conscious consumers at the Super Green
Kameyama Plant, the AQUOS is energy-efficient, resource-efficient and space-efficient.
Sharp has given the AQUOS superb overall environmental performance, with an easyto-recycle design and environmentally conscious components and materials.
③
⑤
①
②
④
⑦
⑧
⑨
⑥
⑩
① AQUOS LC-45BE1W, with its environmentally conscious design ② Stand using recycled plastic and
plant-based paint ③ Cabinet using non-halogen resin gives off almost no dioxins or other toxic
substances when incinerated ④ Speaker grill using easy-to-recycle metal ⑤ Packaging buffer made of
recycled polystyrene foam ⑥ Chassis made of sheet steel that uses no hexavalent chromium, a
hazardous heavy metal ⑦ Halogen-free power cords and wiring ⑧ Screws and nuts using no
hazardous hexavalent chromium ⑨ Lead-free solder circuit boards ⑩ Instruction manuals made
completely from recycled paper and using soy ink
11
■ Environmental and Social Report 2006
A 10-MVA superconducting magnetic energy
storage system supplies electricity in case of
sudden drops in voltage
The Kameyama Plant—
A Model for Environmental
Conservation and Coexistence with
the Local Community
Launched in January 2004, the Kameyama Plant is the
world’s first integrated LCD TV production facility, from
manufacture of LCD panels to final assembly of LCD TVs.
In constructing the Kameyama Plant, Sharp made
coexistence with the local community and reduction of
environmental impact from production top priorities. This
thorough attention to reduce environmental impact resulted
in Sharp winning a Sustainable Management Pearl Award
at the Japan Sustainable Management Awards (sponsored
by Mie Prefecture) in 2004 and the Economy, Trade and
Industry Minister’s Prize at the Japan Water Award in 2006.
Sharp is currently building Kameyama Plant No. 2, which
will use the world’s first 8th-generation glass substrates in
the production of LCD panels. Plant No. 2 will incorporate
improved versions of environmental technologies used in
Plant No. 1. It will also have a 5,150-kW photovoltaic
power system, the world’s largest installation on a building,
and a 1,000-kW fuel cell system, the largest in Japan.
These measures are part of Sharp’s aim to build a state-of-
■ Total number of color TV shipment in Japan
●― CRT TV ●― LCD color TV (10V-inch or larger)
(thousands of units)
10,000
8,000
6,000
■ Sharp Receives Economy, Trade and Industry
Minister’s Prize at the 8th Japan Water Award
For its 100% recycling of production process wastewater at the
Kameyama Plant, Sharp won the Economy, Trade and Industry Minister’s
Prize at the 8th Japan Water Award. Sponsored by water-conservation
organizations and various government ministries in Japan, including the
Ministry of the Environment, the annual Japan Water Award promotes
sound practices in water protection and circulation with the aim of giving
Japan and the rest of the world abundant, safe, clean and drinkable
water in the 21st century. The Kameyama Plant also won the Grand
Prize at the 1st Nikkei Monozukuri Awards and the Sustainable
Management Pearl Award at the 3rd Japan Sustainable Management
Awards in 2004.
4,000
2,000
0
2002
2003
2004
2005
2006
2007
(estimate)
(estimate)
(year)
In comparison with CRT TVs, the demand for LCD TVs that
feature energy efficiency and resource and space savings has
been expanding every year. In 2005, the volume of shipments of
LCD TVs exceeded that of CRT TVs.
Source: JEITA “World Demand Estimate for Main Audio-Video Products”
(February 2006)
Maintaining good
partnerships for “Eco-City
Kameyama”
Ryota Tanaka, Mayor of Kameyama
Two and a half years have passed since the start of full-sale
operation at Sharp’s Kameyama Plant. Sharp has established
a successful business here with the shipment of high-quality
products worldwide: this is a bounty that we all happily share
in. As the mayor of the hometown, I wish to express my
sincerest respect to Sharp.
Crystalline, thin-film, see-through photovoltaic modules
installed on the wall of Plant No. 2
the-art plant that is more environmentally conscious than
anything before. And compared to Plant No. 1, this new
plant will be approximately twice as efficient per amount
invested (in 45V-inch-panel equivalents). This will allow
Sharp to establish a more stable supply system to meet the
growing demand for large LCD TVs.
The Kameyama Plant has been cited as a model for
manufacturing in Japan through cooperation between local
government and private enterprise. Sharp’s construction of
this LCD production base has attracted other LCD-related
companies, leading to the creation of new employment and
to development of the local economy and community.
Customers often rave about the high quality of the LCD TVs
produced at the Kameyama Plant, and as a result many are
specifically asking for “made in Kameyama” LCD TVs.
Sharp will continue to use its business to further good
relations with the community and contribute to local
economic prosperity.
Encouraged by Mie Prefecture’s scheme of developing a
“Crystal Valley,” numerous companies have selected our area
as the location for their sites, and we continue attracting
attention from all over the country as an area that can help
restore Japan’s position as a manufacturing leader. Under such
circumstances, the wishes of residents in the local community
are to create a city that coexists with the environment. It is,
therefore, my responsibility that we build “Eco-City Kameyama”
with companies, citizens and administration acting as one. We
hope to maintain a good partnership with Sharp and continue
to make progress by enhancing our mutually beneficial
relationship.
Arranging observation
areas that local residents
can easily visit
Yuriko Fukaya
Manager
Kameyama Environmental & Industrial
Safety Center
AVC Liquid Crystal Display Group
Deals with environmental conservation at
the Kameyama Plant
We are setting up observation areas for displaying state-of-theart environmental technologies at the Kameyama Plant,
including areas where visitors will have a chance to see the
world’s largest scale photovoltaic power system. By facilitating
local residents visits, we intend to make our plant a place that
provides environmental education for elementary school and
junior high school science classes. Through such efforts, we
wish to further deepen our relationship with the local
community.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Kameyama Plant
Environmental and Social Report 2006 ■
12
“See-through” solar cells used in the new office building of Suzuka City, Mie Prefecture
Football stadium, Mainz, Germany
De Nederlandsche Bank (Central Bank of the
Netherlands), Amsterdam, The Netherlands
Small photovoltaic power system
used in Mongolia
Decentralized photovoltaic
power system, Noyon Village, Mongolia
Nippon Institute of Technology
Solar Academy class
Sharp Aims to Become a “Zero Global Warming Impact Company by 2010”
as the World’s Top Manufacturer of Solar Cells
The energy from one hour of sunlight shining down onto the
surface of the earth is equal to the total amount of energy
consumed by all human beings in one year. Photovoltaic
power generation that converts this natural blessing into
electrical energy is now attracting attention from around the
world as a clean source of energy that does not produce
greenhouse gases.
Sharp launched development of solar cells in 1959, and
swiftly achieved success in mass production in 1963. From
the start, Sharp has been engaged in developing solar cells
for use under extreme climatic conditions, such as on
space satellites or in lighthouses. Sharp has built up a store
of wide-ranging technologies gained through such experiences, and today, has the technologies to build photovoltaic power systems and to make solar cells tailored to specific applications from diverse materials, such as silicon
(single-crystal, polycrystalline and thin-film) and compounds.
In photovoltaic power systems for housing and industry,
whose use has rapidly expanded in recent years, Sharp has
been leading the market with development and production
drawing on its past experiences. As a result, Sharp’s production of solar cells has been the world’s largest in terms
of yearly volume for six consecutive years since 2000.
13
■ Environmental and Social Report 2006
As the top manufacturer of solar cells, in order to further
clarify its efforts for environmental conservation, Sharp set
forth a corporate vision of becoming a “Zero Global Warming Impact Company by 2010.”
■ Corporate vision: Zero Global Warming Impact by 2010
Sharp’s corporate vision limits to the greatest extent possible the amount of greenhouse gas emissions resulting from
Sharp’s business activities around the world. At the same
time, it significantly reduces greenhouse gas emissions by
means of 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 will exceed the amount emitted by fiscal
2010.
■ Sharp’s solar cell production volume
Production volume (MW)
Sharp
Company C
Company F
Company I
Company A
Company D
Company G
Company J
Company B
Company E
Company H
Company K
428MW
I’d like to see Sharp speed up its
efforts toward the goal of
achieving “10% of total power
generation in 2030”
Kosuke Kurokawa, Dr. Eng.
Professor
Strategic Research Initiative for
Sustainability and Survival
Graduate School
Tokyo University of Agriculture
and Technology
Research in 21st-century energy
networks and photovoltaic
power generation
I am encouraged by the fact that Sharp is leading the
industry with enthusiastic production expansion plans and
its development of thin-film solar cells. However, I would like
to see Sharp speed up its efforts in order to realize Japan’s
goal of covering 10% of total electricity generated by
photovoltaic power generation in 2030*.
324MW
198MW
123MW
75MW
30MW
1999
50MW
2000
2001
2002
2003
2004
2005 (year)
Source : PV NEWS(Mar.2006)
Sharp’s production of solar cells has been the world’s largest
in terms of yearly volume for the past six years (since 2000).
Sharp will continue to meet growing demand for solar cells,
and it plans to increase production to contribute to global
environmental conservation.
In addition, I also would like Sharp to emphasize the
environmental superiority of solar cells via assessment by
third-party organizations, as well as the acquisition of the
Japanese Eco Mark.
* “PV Roadmap Toward 2030 (PV2030)” issued by NEDO (New Energy
and Industrial Technology Development Organization), Japan
Speeding up the Widespread Use
of Solar Cells Through Production
Cost Reductions and Development
of New Technologies and Products
We aim to commercialize
high-efficient, low-cost
solar cells
Minoru Kaneiwa
Manager
Development Division I
Solar Systems Development Center
Solar Systems Group
In charge of developing the latest
solar cells
Although compound solar cells for use in space are more
highly efficient than those for residential use, they cannot be
put into practical use for housing due to cost issues. To
overcome these problems, we are utilizing our accumulated
technologies to develop advanced solar cells that only Sharp
with its wide range of experience can perfect.
We provide the type of
environmental education to
children that only business
people can
Fumihiko Hoshika
Manager
Solar Academy
Systems Design Center
Solar Systems Group
In charge of Solar Academy classes at
schools and citizen courses
Environmental technology is changing moment by moment.
Because knowledge of the latest information owned by
companies is highly appreciated in classrooms, we receive
requests to deliver lectures from schools ranging from
elementary to senior high schools. Although it is necessary to
enhance education contents and develop new teaching
materials, the most important thing in environmental
education is “enthusiasm.” I would like to convey to children
our sincere desire to protect the global environment. In order to achieve its goal of becoming a “Zero Global
Warming Impact Company by 2010,” Sharp must continue
to increase production of solar cells. With proprietary
technologies that have been accumulated over the last 47
years, Sharp will push for even higher performance and
lower prices, as well as focus on developing new products
that will lead to new applications.
In 2006, Sharp successfully applied design technology for
space satellite solar cells to residential-use solar cells and
began marketing residential-use photovoltaic modules with
a much higher reliability. In commercializing these products,
Sharp succeeded in reducing the use of silicon, the supply
of which is becoming scarce due to growing global
demand for solar cells, as well as in enhancing their
durability.
Meanwhile, Sharp regards it as a crucial role for a solar cell
manufacturer to publicize the importance of clean energy
and the global environment. To that purpose, Sharp has
been holding “Solar Academy” classes in Japan since
October 2004. Full-time staff visit schools and citizen
courses around the country to explain environmental
problems and clean energy using simple methods based
on quiz games and hand-made teaching materials. People
are so eager to learn that the number of participants in
classes that have been held so far totaled 3,860 as of
March 31, 2006.
Sharp will continue to advocate the importance of
environmental conservation to children who form the next
generation, and promote the widespread use of
photovoltaic power generation through constant
technological innovation to build a sustainable society.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Photovoltaic power systems
Environmental and Social Report 2006 ■
14
2005 Highlight 1
SMF in France Becomes the First Overseas
Super Green Factory
Sharp’s objective is to make all its production sites highly conscious environmentally. Green Factories are steadily
making progress overseas. SMF* became the first overseas plant to match the standards for a Super Green Factory.
* SMF: Sharp Manufacturing France S.A. Production company for office equipment.
Our next challenge is sustainable development
SMF officially took up the challenge, in July 2004, of being ranked the first overseas
Super Green Factory. Speaking for myself, I have to admit that ever since the 70s, I
have felt concerned about environmental problems. That is why I am very proud to
work at a company that makes this issue a priority.
The success of our approach to environmental issues is based on the two following
pillars: an ambitious attitude towards permanent improvement and the involvement
of all our employees, from workers to management. Thanks to their steady contributions, we have reached our first goal: Super Green Factory. The next challenge is to
continue our efforts towards sustainable development.
SMF President
Jacques Buclon
15
■ Environmental and Social Report 2006
“We do not inherit the earth from our ancestors, we borrow it from our children”
Native American proverb borrowed by the French writer Antoine de Saint-Exupéry
SMF’s environmental performance
■ CO2 emissions
■ Water consumption per person per day
(per production unit: t-CO2/100 million yen)
60
2.8
10
58.5
9.75
49.7
30
5
g
2
51.1
i
2.4
H
4
3.6
■ Final landfill disposal (tons)
(liters)
2.20
2003
2004
0
2005
2003
2005
0
2000
(fiscal year)
2001
0.90
2002
0.10
0.00
0.00
2003
2004
2005
(fiscal year)
l
(fiscal year)
2004
h
0
i
■ Examples of SMF’s environmental activities
(see Web site for details)
g
h
First ISO 14001-Certified Company
in the Alsace Region
t
SMF, established as a copier production base in May 1989,
is located in the Alsace region of northeastern France,
which is famous for wine. With some 200 employees, SMF
currently produces mainly digital copier/printers.
The top three teams in the “Green Mind” contest
Signing the “Eco-Citizens’ Charter”
Introduction of a heating control system
Improving packaging design
In September 1996, SMF became the first company in
Alsace to acquire ISO 14001 certification and the eleventh
to do so in France, indicating that SMF has always been
enthusiastic about environmental conservation. Particularly
since the late 1990s, SMF has made active environmental
efforts to steadily reduce CO2 emissions, water
consumption and final landfill disposal. In 2004, SMF
achieved zero discharge to landfill and continues to
maintain this record.
Efforts to Become the First
Overseas Super Green Factory
What lies at the center of Super Green Factory efforts
started under the leadership of President Buclon is the
“Green Mind” contest.
Saving water with a new automatic faucet
Switching to eco-friendly detergents
Composting food scraps
Introduction of a vacuum dust collector
Carpool commuting
Sorting waste in offices
Sharp started the system of certifying Super Green
Factories in fiscal 2004. During the initial year, the
Kameyama Plant was certified as a Super Green Factory.
Then in fiscal 2005, the Mie Plant reached certification
standards.
In July 2004, SMF started the Green Mind contest with the
participation of about one-third of all personnel—60
employees divided into 15 teams. In March 2005, the
results of their environmental conservation activities were
announced in front of all employees and the top three
teams that made considerable contributions were honored.
These activities continued, resulting in SMF’s certification
as a Super Green Factory.
It goes without saying that the leadership of management
was behind SMF’s success. However, while the
Kameyama Plant and Mie Plant were certified as Super
Green Factories based on the knowledge of experts and
leading-edge technologies, SMF’s certification was really
achieved through all the employees’ awareness and
actions concerning environmental conservation.
Our activities aim for sustainable development
Our team brings together personnel from across the company who work for environmental conservation
and raising environmental consciousness. In 2005, 60 employees in 15 groups participated in Green Mind
activities, which produced results that led to the certification of SMF as a Super Green Factory. We plan to
extend our environmental conservation activities towards achieving sustainable development.
SMF’s environmental monitoring team
From left: Jacques Haubensack, Manager, PQA Dept.; Daniel Fried, Assistant Manager, PQA Dept.;
Isabelle Langenfeld, Manager, Personnel Dept.; Georges Dalbo, Manager, Engineering Dept.; Jean Michel Humbert,
Supply Chain Senior General Manager, Production Dept.; and Dominique Schwartz, General Manager, Production Dept.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Green Factories
Environmental and Social Report 2006 ■
16
2005 Highlight 2
Practical Application of Plant-Based Paint a
New Step Towards a Resource-Recycling Society
Sharp and Kansai Paint Co., Ltd. have become the world’s first companies to develop technology for
painting the plastic parts of consumer electronics with plant-based paint made from corn.
We will further conduct R&D to make the paint
a world standard
It was only several years ago that we
first started basic research into plantbased paint that we considered would
contribute to a sustainable society. I
feel extremely honored that, because
of Sharp’s interest in this environmentfriendly paint, we were able to jointly
develop a technology for painting the
plastic parts of consumer electronics
with plant-based paint for the first
Kazuhiko Ohnishi
Department Manager
time in the world. We will further conTechnology Department I
duct R&D to make the paint a world
Industrial Paint Division
standard, and establish more one-ofKansai Paint Co., Ltd.
a-kind, next-generation technologies.
Jointly developed plant-based
Corn
Corn powder
Cornstarch
Contributing to a resource-recycling society
Absorption
Esterified
starch
CO 2
Incineration
Plant-based
paint
Disposal
paint
17
■ Environment-conscious circulation of plant-based paint
Plant-based paint, when incinerated, releases CO2 that was originally absorbed by corn
during its growth. This means that the total amount of CO2 in the air does not increase.
■ Environmental and Social Report 2006
H
i
The first product in the world to use plant-based paint
made from corn*: the AQUOS LCD TV uses the paint
on its stand
g
h
* As of January 26, 2006, for consumer electronics
LC-45BE2W
l
LC-45BE1W
i
As seen in Japanese lacquer ware, plant-based paint has
been a familiar commodity in our life from ancient times.
However, the application of conventional plant-based paint
to mass-produced industrial products has been difficult to
achieve due to the hardness of the paint film, its insufficient
adherence to materials, and the long time it takes for the
paint to dry.
However, paint-applied plastic is difficult to recycle and
usually ends up in landfill or incineration because the hard
film mixed into the plastic significantly deteriorates the
characteristics of the material. Sharp took notice of plantbased paint while studying ways to recycle paint-applied
waste plastic, and began joint development with Kansai
Paint in April 2004.
By modifying cornstarch and adjusting its molecular weight
as well as optimizing the amount of hardening agent,
Sharp and Kansai Paint worked on adherence to materials
and hardness of the paint film to improve durability, as well
as on gloss and texture to improve quality and
performance.
t
When plastic made from petroleum and other fossil
resources is incinerated, CO2 is released into the
atmosphere. In 2001, Sharp put closed-loop plastic
material recycling technology that repeatedly recycles
scrap plastic and reuses it in new home appliances into
practical use to expand the volume of recycled waste
plastic.
h
World’s First Plant-Based
Paint-Applied Plastic Parts
g
Most Paint-Applied Waste Plastic
is Subject to Landfill or Incineration
In April 2004, Sharp’s closed-loop plastic material recycling technology received
the Education, Culture, Sports, Science and Technology Minister’s Prize at the
13th Global Environment Awards in Japan sponsored by the Japan Industrial
Journal (above left). The same technology also won the 15th Best Technology
Award sponsored by the Japan Society of
Polymer Processing in June 2005 (above
right).
In May 2006, Sharp’s plant-based paint received the 56th Industrial Technology
Award sponsored by the Osaka Industrial Research Association (above).
We will develop future-oriented one-of-a-kind
environmental technologies
Yoshitake Sumida
Department General Manager
Environmental Technology
Development Department
Environmental Protection Group
Leads R&D in environmentfriendly materials
Products currently manufactured
will be due for recycling in
approximately 10 years time, or
in some cases, even as long as
20 years. Development of
recycling technology spans a
long period. Without being
constrained by the existing flow,
we will continue to develop oneof-a-kind technologies by
anticipating future trends.
Following R&D that continued for nearly two years, the two
companies succeeded in developing a plant-based paint
that has performance equal to that of conventional paint
made from fossil resources. Sharp used this plant-based
paint for the stand of the AQUOS LCD TV that was
marketed in March 2006. Thus, Sharp became the world’s
first company to paint the plastic parts of consumer
electronics with plant-based paint.
Plants take in CO2 during the process of growth. The CO2
reduction effect of plant-based paint used on the stand of
the 45V-inch AQUOS amounts to approximately 24 grams
per unit. If plant-based paint had been used in the some
four million AQUOS units produced in fiscal 2005, the
volume of CO2 reduction would have totaled 96 tons. This
is equivalent to the amount absorbed by a 29-hectare
forest.
Sharp plans to use plant-based paint for air conditioners,
washing machines and other white goods. Together with
technology for blending plant-based plastic and waste
plastic, which was developed in July 2005, Sharp will
increase considerably the use of plant-based resources to
reduce the environmental impact of consumer electronics.
We want to establish plant-based technology
that will become commonplace
The use of plant-based paint for
products other than consumer
electronics will greatly contribute
to environmental conservation.
To initiate such a trend, we will
further enhance the paint’s quality and performance. And by reducing the need for new supplies
of fossil resources through the
use of plant-based plastic and
materials collected from waste
consumer electronics, we can
contribute to building a sustainable, resource-recycling society.
Yoko Fukushima
Junior Manager
Environmental Technology
Development Department
Environmental Protection Group
Worked on R&D of plant-based
paint
Environmental and Social Report 2006 ■
18
2005 Highlight 3
Promoting Company-Wide Affirmative Action for
Women for Fostering Diversified Human Resources
As part of its “Company-Wide Affirmative Action for Women* Promotion Campaign,” Sharp is expanding job fields for
women and raising the percentage of female managers under its “Corporate Affirmative Action for Women Strategy
Program” in Japan. This human resource development program aims to give talented and motivated female employees
the chance to make the best of their abilities and qualifications.
* Affirmative action for women: A voluntary effort by a company that seeks to redress discrimination against women in employment to ensure equal opportunities (stipulated under the Law for Equal Employment Opportunity for Men and Women in Japan).
■ Corporate Affirmative Action for Women Strategy Program
Main measures
“New Face”
program
Awareness
raising of
female
employees
“Female junior
manager 25%”
target
Corporate Affirmative
Action for Women
Female
Strategy Program Awareness
manager
candidate
development
program
19
enlightening
of management
Fostering
abilities of
female
employees
■ Environmental and Social Report 2006
■ Main measures and targets of the
Corporate Affirmative Action for Women Strategy Program
When
started
Target
Target
(period of achievement)
50
Number of departments
Development of New Face program
22
departments
(expanding departments [job fields] for where women can
departments (as of the end of
1)
actively work in
female employees*
fiscal 2005)
Results
71 departments
(as of March 2006)
Target achieved
Development of “female junior
manager (sub-managerial positions)
25%” target*2
Ratio of junior
managers to all
female employees
17.3%
(as of the end of
fiscal 2007)
Female manager candidate
development program
Number of female
managers
60 persons
28 persons
21 persons
(as of the end of
fiscal 2007)
(as of April 2006)
Fostering abilities of female employees Number of female
(appointing as leaders in small-group activities) group leaders
131 persons
(as of the end of
fiscal 2005)
25%
250 persons
19.8%
(as of April 2006)
171 persons (as of March 2006)
Continue efforts to achieve
250 persons during the first
half of fiscal 2006
*1 Departments in which the ratio of women is 30% or more and where they can easily
demonstrate their abilities and aptitude
*2 Only within Sharp Corporation
H
Each site in Japan has an
Affirmative Action for Women
Promotion Team since
December 2005. To date, a total
of 23 teams have been
organized company-wide to
exchange a variety of opinions.
i
g
h
l
i
Not a Mere Preferential Treatment for Women,
but a Business Strategy Aiming to Bring Out
the Best in All Employees
Sharp’s Company-Wide Affirmative Action for Women Promotion Campaign is not a mere preferential treatment for women,
but is a business strategy aiming to bring the capabilities of all
employees to their highest levels. The campaign is based on
the assumption that women have more room left to grow
compared to men.
To enable a woman to work while raising
children, the presence of men who support
and understand her is essential. In my own
case, with cooperation from my husband,
understanding of my superiors and colleagues, and the childcare support systems, I
can devote myself to research on next-generation displays, which is one of the most
advanced research themes.
Tomoko Teranishi
Through affirmative action for women, I
Third Research Department
Display Engineering Laboratories hope that women who have jobs while raisDisplay Technology
ing a family will become nothing rare in the
Development Group
future.
My policy is to do the best I can at every moment
Michiyo Toyoda
Products Planning Department
Document Systems Division
Digital Document Systems
Group
Expanding the Range of Benefits to
Support Balance Between Work and Family
In addition to various benefits including maternity and parental
leave, Sharp Corporation established the “Reemployment Following Childcare Leave” system in April 2006. The company
also extended the period of time for reduced working hours for
childcare reasons. And to help employees receiving fertility treatment, the company launched a new leave system and a loan
system with the cooperation of a group financing company.
With the Corporate Affirmative Action for Women Strategy
Program in place and the expansion of various systems supporting the balance between work and family, Sharp aims to
create a workplace where each employee can demonstrate
diverse abilities regardless of gender in Japan.
My basic stance toward work is dealing with
any work as best as I can until I am fully satisfied. Even after my marriage, my policy is unchanged, and remains so even now when I
am working while raising a child. My child being only three years old and also having to
take my husband’s circumstances into consideration, I am not always able to make
overnight business trips or work overtime.
However, I feel grateful that I can be in charge
of business planning and other challenging
work. By dealing with work as best as I can, I
hope to raise my professional skills.
I expect the company to be a place where everyone can
work without difficulty
Sharp is now planning to make full-fledged efforts to increase
the number of female managers. The efforts include providing
training for candidates and establishing a mentor system of
women currently holding managerial posts.
To make all employees more familiarized with the activities and
developments of Sharp’s affirmative actions, the company has
opened an “Equal Opportunity and Work and Life Balance Information” site on the intranet. The site provides tips on how
to balance work and family and information on career development as well as introduces messages from employees.
t
After analyzing personnel data, for example those from the
Personnel Declaration System, interviewing female employees, and conducting awareness surveys on all managers and
female employees, the team formulated the “Corporate Affirmative Action for Women Strategy Program” to provide talented, motivated female employees the chance to fully demonstrate their capabilities.
h
Diversifying human resources and effectively using women’s
abilities have become important elements in global business
management. Sharp has so far worked to promote women to
managerial posts and revise working systems. To accelerate
the initiative, Sharp Corporation established a “Corporate
Equal Partnership Project Team” within the Human Resources
Group in October 2004 and placed the team in charge of expanding opportunities for women.
I hope these efforts will have an impact
on the whole society
g
Corporate Affirmative Action for Women Strategy
Program Fosters Personnel that Support Sharp’s
One-of-a-Kind Strategy
Kayo Takashima
IBU Sales & Marketing Department
Sales & Marketing Division I
Sales & Marketing Group—
Electronic Components & Devices
Having being assigned to international sales
departments since joining the company, I
have gained experience of working with
overseas customers. My bosses treat men
and women equally, and are genuinely concerned about my career and those of other
junior staff. With the philosophy behind the
Company-Wide Affirmative Action for Women Promotion Campaign further understood
by more employees, I hope the company
becomes a place where everyone can work
without difficulty regardless of gender or
age.
We aim to create a workplace where employees can
demonstrate their individuality and strength
Through interviews at sites and companywide questionnaire surveys conducted by
our project team, I have had opportunities
to hear the true feelings of female employees, in which I have felt their strong motivation to work. I hope that our Corporate Affirmative Action for Women Strategy Program
will create a workplace where more and
more women take active roles in their jobs
and where male employees will also be inspired to demonstrate their individuality and
strength more than ever.
Hitomi Mori
Chief
Corporate Equal Partnership
Project Team
Human Resources Group
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Various systems for supporting the balance between work and family ■ Examples of affirmative action activities
Environmental and Social Report 2006 ■
20
2005 Highlight 4
Daycare and Clinic at SEMEX Site
Greatly Contribute to the Local Community
SEMEX* and the Mexican Social Security Institute cooperated to open a public daycare and clinic in
Rosarito, Baja California, where public facilities are in short supply. As an excellent example of
social contribution, the daycare and clinic have attracted the attention of both the city and the state.
* SEMEX: Sharp Electronica Mexico S.A. de C.V. Production company for consumer electronics.
My child looks forward to going
to kindergarten
We are satisfied with the
facilities and services
Because the facility cares
for my child after the
kindergarten class is over
until I finish work, I feel
secure and appreciate the
system very much. My
child looks forward to
going to kindergarten
every day.
SEMEX employee using the
daycare
Maria del los Angeles Martinez
and her daughter Abril
21
■ Environmental and Social Report 2006
I appreciate the daycare because
I work at a nearby factory
We work at a nearby
factory and have used this
daycare for more than a
year. We are extremely
satisfied with the daycare’s
facilities and services.
Daycare user
Amando Contreras, Michelle
Marcial and their daughter
Sophia
We have just moved here
from southern Mexico to
obtain a job. Because
I work at a nearby factory,
I appreciate the daycare
service very much.
Daycare user
Karla Sagaste Guzman and her
daughter Kimberly
■ How the SEMEX public daycare is run
H
Sharp
Corporation
h
Mexican Social Security
Institute (IMSS)
g
Entrance of the daycare
Consigns
management
i
Daycare/
kindergarten service
Land, building
SEMEX building
l
i
g
Upon request from the Mexican Social Security Institute
and to enhance the welfare of employees, SEMEX decided
to offer some land and a building within its site for use as a
public daycare at no charge. Thus, SEMEX’s daycare
became the first public daycare in Rosarito, and a joint
project between the national government and a private
enterprise.
One of the Largest Daycares
in the State Widely Accepts
Local Children
When SEMEX opened the daycare in October 2001, it was
assumed that the ratio of children of local residents,
except those of SEMEX employees, would account for
some 10%. However, the actual ratio far exceeded the
estimate, climbing to 40%. With the growing reputation of
the daycare’s excellent facilities and services, the ratio of
children of local residents has now reached about half of
the total.
Upon requests from parents, a kindergarten was also
established on the site in 2003. As of February 2006, the
daycare looks after 216 children (up to four years of age)
and the kindergarten cares for 56 children (ranging from
four to six years of age). It has become one of the largest
among the 95 daycare facilities run by the Mexican Social
Security Institute in Baja California.
Five years of duty have helped
me learn a lot
Person responsible for
running the daycare
Margarita Munguia
After working as a junior
high school principal and as
the person in charge of
opening a daycare in neighboring Tijuana, I became responsible for this daycare
five years ago. I think it is
the daycare’s crucial role to
help young parents understand the responsibilities
and importance of raising
children.
Clinic Established With the
Cooperation of Individuals,
Companies and the Government
In rapidly developing Rosarito, medical facilities are also in
short supply. Taking this situation into consideration,
SEMEX proposed to the Mexican Social Security Institute a
plan to jointly establish a public clinic next to the daycare,
and the plan became reality. For the clinic’s construction,
the mayor of Rosarito ran a campaign on TV to solicit
donations from citizens and local companies.
Born from the cooperation of individuals, companies and
the government, the clinic opened in May 2006 and is
expected to solve the problems faced by local residents
due to not being able to receive medical treatment and
care in the neighborhood. At the same time, SEMEX
employees and their families also benefit from the clinic.
Employees now have a work environment that enables
them to better devote themselves to work.
Through future community activities such as these, SEMEX
aims to become a company that can contribute to the
local community.
I treat these children with care,
just as if they were my own children
Nursery teacher
Laura Cordova
t
Rosarito in Baja California, where SEMEX is based, is
located on the western coast of Mexico, 20 km south of
the US border. It is a young city that became independent
from neighboring Tijuana in 1995. The rapid urbanization
and population growth due to its reorganization as a city
have resulted in chronic shortages of hospitals, schools,
daycares and other public facilities.
The opening of the daycare has enabled SEMEX
employees to bring their children to work with them and
collect them when they leave. Employees can devote
themselves to their work knowing their children are safe
and cared for. The fact that the daycare accepts children
from local residents while being located on a company site
has attracted attention from both the city and the state as
an unprecedented case of contribution to the local
community.
h
SEMEX Offers Land and Building
Without Charge for a Public Daycare
I appreciate the fact that
this daycare, being a public one, has education
programs that run
throughout the year. I provide guidance to children
based on a class plan
prepared at the beginning
of the week, and check
how much progress the
children have made at the
end of the week.
I feel proud of our social contribution
through the daycare and clinic
SEMEX President
Nobuo Harada
I am delighted that local
residents appreciate the
daycare and clinic established on our site. I want
to place importance on
not only SEMEX’s contribution to the development of the local economy but also its stance of
returning profits to the
local community.
Environmental and Social Report 2006 ■
22
TOPICS
R-CATS Small-Group Activities Play
a Big Role in Fulfilling CSR
Sharp has initiated small-group activities called R-CATS (Revolution Creative Action Teams) on a global scale.
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.
The best R-CATS solutions are selected for presentation at
contests twice a year in Japan and once a year in each
overseas region—Pan Atlantic, Asia and China.
Logo imaged after the Q in “Quality”.
This represents efforts to improve
the quality of mind, products and
work with the cooperation of
everyone involved.
One-of-a-Kind Small-Group Activities
from the Viewpoint of CSR
Sharp’s small-group activities began at a TV production facility
40 years ago in 1966. Sharp began R-CATS on a global scale
in 2003 in order to enhance these small-group activities. As of
March 2006, a total of 3,024 domestic teams (comprising
27,529 employees) and 1,673 teams from 23 overseas bases
(comprising 16,602 employees) took part in R-CATS activities.
R-CATS is a uniquely Sharp small-group activity in which not
only production departments, but also all departments in indirect divisions, including those overseas, participate. The
groups select important themes closely linked to the department’s mission and reponsibilities from the viewpoint of CSR.
Raising efficiency and making improvements at work, such as
reducing waste, raising quality levels and securing safety,
contribute to not only Sharp, but also to customers and other
stakeholders. By designating R-CATS themes from the viewpoint of CSR, everyone in the workplace can work together
on themes such as environmental conservation, legal compliance and boosting customer satisfaction.
23
■ Environmental and Social Report 2006
Sharp regards R-CATS as management activities that enhance the strengths of both the individual and organization to
their highest levels. And R-CATS small-group activities conducted in all departments around the world play an important
role in fulfilling CSR.
R-CATS is an ideal tool to spread the thinking
behind CSR throughout the entire company
R-CATS small-group activities that
solve issues in each department
through teamwork have produced
considerable effects in the development of human resources and organization. And because R-CATS is a
mechanism that directly links the front
and base-line of business to management, it is the ideal tool for making
Sharp’s CSR concept of “fulfilling responsibilities in society through manufacturing and technology-oriented
business” better understood throughout the entire Sharp group.
Misae Takagi
Assistant Department General
Manager
R-CATS Company-Wide
Promotion Office
Quality Strategy Section
CS Promotion Group
Sharp and the Environment
In Pursuit of Becoming an Environmentally
Advanced Corporate Group
Policies, Objectives and Achievements
Concerning the Environment
Advancing Super Green Management
Developing Super Green Technologies
Creating Super Green Products and Devices
Building Super Green Factories
Reducing Greenhouse Gas Emissions
Minimizing and Recycling Waste
Effectively Managing Chemical Substances,
Conducting Risk Management
Environmentally Conscious Logistics and Packaging
Developing Super Green Recycling
Promoting Environmental Communication
SMF (Sharp Manufacturing France S.A.) became the first overseas factory to achieve Super Green Factory status and is the third such facility for Sharp.
Environmental and Social Report 2006 ■
24
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Policies, Objectives and Achievements
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. To realize the medium-term goal set in fiscal 2004 of becoming an “Environmentally Advanced Company” and to
achieve the corporate vision of becoming a “Zero Global Warming Impact Company by 2010,” Sharp will continue to strengthen
its efforts aimed at 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
2. To Develop Environmentally Conscious
Products and Services, and Conduct Our
Business Operations in an Environmentally
Conscious Manner
See Web site for full text
Major Objectives and
Fiscal 2005 Results
Stages
Enhance and expand environmental
management system
Acquire ISO 14001 certification
Environmental
Sustainability
Management
In regard to technologies, the use of Sharp’s
closed-loop plastic material recycling technology continued to steadily expand. The
company also developed a method for
blending plant-based plastic and waste plastic. In addition, Sharp began to use plantbased paint in the production of stands for
the AQUOS series of LCD TVs, employ
easy-release fasteners in phones, and introduce micro-nano bubble technology at its
LSI plant in Fukuyama. All of these technologies hold promise for further developments
in the future.
Introduce environmental management accounting and develop
tools for promoting environmental sustainability management
Hold environmental education programs
Hold environmental seminars
Establish 3R technologies
Develop mass-production technology for easy-release fasteners
Establish LCD TV recycling technoloy
Planning
and
Design
Improve safety of components and materials
Reduce chemical substances in products
Increase Green Seal Products’ share of net sales in Japan*1
Develop Green Products
Increase Super Green Products’ share of net sales in Japan
Increase Green Devices’ share of net sales*2
Develop Green Devices
Increase Super Green Devices’ share of net sales
Convert factories to Green Factories
Build Green Factories (GF) and Super Green Factories (SGF)
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 resources
Reduce risk from harmful chemicals
Reduce discharge risk of
chemicals under high-priority control
Logistics
Reduce distribution-related CO2 emissions
Change modes of transportation in Japan
Recycling
Recycle used products
Enhance and improve recycling systems
Social contribution activities
Expand and diversify environmental social contribution activities
Manufacturing
Regarding facilities, overseas production
sites have prominently reduced their impact
on the environment. At the global environmental conference in November 2004,
Sharp announced a plan to upgrade all its
group factories to Green Factories by fiscal
2007, and has since made follow-up announcements at environmental conferences
worldwide. These initiatives have accelerated
efforts to reduce environmental impact at every site.
■ Environmental and Social Report 2006
Establish tools for environmental
sustainability management
Promote closed-loop plastic material recycling
In regard to products and devices, Sharp
achieved all targets for the percentage of
sales achieved by four kinds of Green Products and Devices. In fiscal 2006, Sharp established a new framework for making fullscale use of the LCA system, which is expected to further expand and evolve Sharp’s
efforts for improving environmental performance.
25
Major Objectives
Implement Sharp Environmental
Management System (S-EMS)
In fiscal 2005, the second year after Sharp
set forth its medium-term goal of becoming
an Environmentally Advanced Company, the
mechanism put in place during the initial year
steadily produced results.
With the start of the third year, Sharp will accelerate its efforts to become an Environmentally Advanced Company.
Themes
See Web site for full text
Social
Responsibility
*1
*2
*3
*4
The sales ratio of Green Seal Products includes sales of Super Green Products.
The sales ratio of Green Devices includes sales of Super Green Devices.
Amount of waste discharged plus the amount of valuable resources
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’s corporate vision limits to the greatest
extent possible the amount of greenhouse gas
emissions resulting from Sharp’s business
activities around the world. At the same time, it
significantly reduces greenhouse gas emissions by
means of 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 will
exceed the amount emitted by fiscal 2010.
Self Evaluation
: Achieved more than targeted
Fiscal 2005 Objectives
“Super Green Strategy” Aiming to Become
an Environmentally Advanced Company
SGP/D Super Green Products and Devices
Environmentally
Advanced
Company
Create products and devices with high environmental
performance
SGP/D
SGT Super Green Technologies
Develop unique environmental technologies that
contribute to environmental conservation
SGF Super Green Factories
SGT
SGF
Develop environmentally conscious factories that
can be trusted by local communities
SGR
: Achieved as targeted
Recycle used products to promote reuse of resources
SGM Super Green Management
SGM
Fiscal 2005 Achievements
SGR Super Green Recycling
Enhance environmental sustainability management
: Achieved more than 80% of initial target
SelfEvaluation
: Achieved less than 80% of initial target
Fiscal 2006 Objectives
Fiscal 2008 Objectives
Complete introduction of S-EMS at all
domestic non-production sites (total 50)
Completed introduction of S-EMS at all
domestic non-production sites (total 51)
○
Introduce S-EMS at 10 overseas production
companies (sites)
Complete certification at all overseas nonproduction consolidated subsidiaries (total 21)
Completed certification at 3 overseas
non-production consolidated subsidiaries
(total 20)
△
Complete certification at all overseas
non-production consolidated subsidiaries
(total 21)
Introduced new tool to promote environmental
Introduce environmental management accounting sustainability management (personnel expenses)
to all domestic production sites (companies)
Developed new tool to promote environmental
sustainability management (energy management)
○
Complete introduction of tool to promote
Introduce new tool to promote environmental
sustainability management (energy management) environmental sustainability management
General:
General:
Continue e-learning in Japan
Expert:
Continue
Expert:
Compliance: Hold programs at North American
and European sites
Compliance:
○
General:
Continue overseas training
Expert:
Train integrated MS auditors
Compliance: Continue training on laws and
regulations
General:
Continue overseas training
Train overseas environmental masters
Expert:
Compliance: Provide reciprocal training at
overseas sites
◎
600 tons
1,000 tons
○
Develop easy-release fasteners for audio/video
equipment
Use in audio/video equipment
○
Conduct verification tests on technology to
recover indium from LCD panels
Implement technology for recovering
indium from LCD panels
Provided e-learning for new and
mid-career employees
Provided environmental master training
six times (68 persons participated)
Held programs in four areas
Use 500 tons of recycled plastic in new products
Used approx. 520 tons
Use in communications equipment
Used in chargers of cordless handsets for
home-use phones
Develop recycling technology for LCD TV
cabinet materials
Developed recycling technology for LCD TV
cabinet materials
Complete introduction of S-EMS at all domestic
and overseas production sites (companies) (total 39)
−
Have all products for Europe and all new products All products for Europe and new products except for a few
for all other areas comply with RoHS directive
products for some areas complied with RoHS directive
△
Green Seal products accounting for 80% of
net sales
Approx. 87%
◎
85%
90%
Super Green Products accounting for 20% of
net sales
Approx. 35%
◎
30%
40%
Green Devices accounting for 40% of net sales Approx. 51%
◎
65%
85%
Super Green Devices accounting for 5% of
net sales
◎
10%
20%
Japan:
Approx. 7%
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 GF
Raised average improvement rate of
environmental performance at Sharp
Corporation production sites by
approx. 16% compared to fiscal 2003
and upgraded 3 domestic subsidiaries/
affiliates to GF
Overseas: Upgrade 4 production sites to GF
Overseas: Upgraded 1 production site to SGF and
7 to GF
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 all production sites
Japan:
Product sites: Reduced by approx. 12% from previous fiscal year
Device sites: Increased by approx. 2.5% from previous fiscal year
Overseas: Reduced by approx. 15% from previous
fiscal year at all production sites
Japan:
Japan:
Recycle 14% of waste into valuable
resources
Recycled approx. 13% of waste into
valuable resources
–
–
Japan:
△
Upgrade 5 Sharp Corporation
production sites to SGF and 5 to GF,
and 5 subsidiaries/affiliates to GF
Goal for fiscal 2007:
Upgrade all Sharp Corporation production sites
to SGF
Upgrade all other domestic and overseas
production sites (subsidiaries/affiliates) to GF or
higher
◎
Overseas: Upgrade 1 production site to
SGF and 14 to GF
×
Japan:
Product sites: Reduce by 2% (every fiscal year)
Device sites: Reduce by 5% (every fiscal year)
◎
Overseas: Reduce by 2% from previous fiscal year at all production sites (every fiscal year)
△
Japan:
Goal for fiscal 2010:
Reduce by 25% compared to fiscal 1990
per real production unit*4 (Japan)
Reduce amount of waste discharged by 3% from previous fiscal year
(every fiscal year)
Overseas: Reduce amount of waste, etc.
discharged*3 by 2% from previous
fiscal year
Overseas: Reduced amount of waste, etc.
discharged by approx. 17% from previous
fiscal year
◎
Overseas: Reduce amount of waste, etc. discharged by 2% from previous fiscal year
(every fiscal year)
Reduce discharge risk of chemicals by 30%
compared to fiscal 2003 at Sharp Corporation
production sites
Reduced by approx. 48%
◎
Reduce by 55% or more compared to fiscal 2003
Reduce by 60% or more compared to fiscal 2003
◎
1,050 containers/month
4,400 t-CO2
1,250 containers/month
5,200 t-CO2
Strengthen domestic recycling of home appliances
Global development of recycling technologies
Railway cargo transport of 900 containers/month 963 containers/month
Approx. 4,133 t-CO2
Reduce CO2 emissions by 3,500 t-CO2
Begin smooth operation of recycling systems
in Europe
Began operation from countries that have
established recycling systems
Total 30,000 employees from 29 sites
Total 27,108 employees from 30 sites
(almost all employees) participating in Japan:
Overseas: Expanded number of active sites to 25
SGC activities
Overseas: Expand number of active sites to 30
○
Japan:
Japan:
△
Develop “Sharp Forests” in seven
places around the country
Overseas: Encourage SGC activities to take
root at major sites
Japan:
Goal for fiscal 2007:
Develop “Sharp Forests” in ten places
around the country
Overseas: Encourage SGC activities to take root
at major sites
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ The Sharp Group Charter of Corporate Behavior (full text) ■ The Sharp Code of Conduct (full text)
Environmental and Social Report 2006 ■
26
Policies, Objectives and Achievements Concerning the Environment
Corporate Vision:
Zero Global Warming Impact by 2010
Sharp and the Environment
In
of Becoming an Environmentally Advanced Corporate Group
社Pursuit
会とシャープ
Advancing Super Green Management
In line with the Environmental Protection Group’s management system, Sharp is steadily improving environmental sustainability,
as well as the commitment of its employees to environmental conservation. To this end, Sharp has added environmental criteria
to the evaluation of business group results. It has also introduced a proprietary environmental management system S-EMS*1 and
environmental management accounting, in addition to promoting environmental education.
Objectives for Fiscal 2005
Achievements
Objectives for Fiscal 2008
Objectives for Fiscal 2006
● Complete introduction of S-EMS at all
domestic and overseas production sites
(companies) (total 39)
● Complete introduction of S-EMS at all
domestic non-production sites (total 50)
Completed introduction of S-EMS at all
domestic non-production sites (total 51)
● Introduce S-EMS at 10 overseas
production companies (sites)
● Complete ISO 14001 certification at all
overseas non-production consolidated
subsidiaries*2 (total 21 )
Completed certification at 3 overseas
non-production consolidated subsidiaries (total 20)
● Complete certification at all overseas
non-production consolidated subsidiaries*2 (total 21)
● Acquire integrated management system
certification (2 Sharp Corporation sites)
―
● Acquire integrated management system
certification (7 Sharp Corporation sites)
*1 Sharp Environmental Management System
*2 Companies of less than 30 employees are excluded.
Environmental Sustainability
Management System Centered on
the Environmental Protection Group
Integrating Environmental Criteria into
the Evaluation of Business Group
Accomplishments in Japan
Acquiring ISO 14001 Certification,
Building Integrated Management
System
Sharp Corporation’s Environmental Protection Group holds strategy conferences as the
governing body that legislates the Sharp
Group’s environmental sustainability management policies. Overseen by the director
in charge of environmental affairs, participants at the conferences deliberate and set
guidelines, strategies and objectives. The
group also hosts company-wide environmental conferences for sites to discuss and
report on progress and to establish concrete
action plans for the future.
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.
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.
The group also holds a global environmental
conference every two years, where participants gain a deeper understanding of environmental guidelines, strategies and objectives, as well as 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 to inaugurate committees, project teams and
workgroups as special needs arise.
In fiscal 2004, Sharp focused on two important environmental criteria: the sales ratio of
Green Products and Devices, and the progress rate of factors that are working toward
the prevention of global warming. However,
activities aimed at improving environmental
performance at factories could not be accurately evaluated with these two existing criteria for judging business results.
Hence, in fiscal 2005 Sharp added two more
criteria: how well accident prevention for environmental safety has been achieved, and
how well the chemical substances risk reduction plan has been achieved.
Sharp began working toward ISO certification in 1995; today, all 17 domestic and 22
overseas production sites (companies) have
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 2006.
In Japan, Sharp began efforts to create an
integrated management system that includes
a quality management system in fiscal 2006.
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.
■ Environmental sustainability management system
Management Strategy Conference
Overseen by the President
Environmental Strategy 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
Company-Wide Environmental Conference
Global Environmental Conference
Overseen by the director in charge of environmental affairs
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)
27
■ Environmental and Social Report 2006
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
The 1st environmental conference in China
(on September 8, 2005, in Shanghai)
To reinforce environmental compliance and
enhance environmental efforts, Sharp established 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.
By fiscal 2004, Sharp had introduced S-EMS
into 10 production sites in Japan. In fiscal
2005, Sharp completed the introduction of
S-EMS into all 51 domestic non-production
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.
* Companies of less than 30 employees are excluded.
■ S-EMS structure
Sites
ISO 14001 requirements
+
Green Auditing
The Environmental Protection Group carries
out “green auditing” at sites where S-EMS
has already been introduced. As a general
auditing measure, green auditing provides a
comprehensive understanding of companywide 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, but also to improve and expand the
contents of S-EMS to make it a more effective management system.
In fiscal 2005, Sharp conducted green auditing at the Mihara and Kameyama sites. Together with the sites audited in fiscal 2004,
this brings the number of domestic sites to
receive their first green auditing to 10 sites.
The audits revealed that S-EMS was operating correctly at all sites and there were no
“nonconforming” issues reported.
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
Educating S-EMS Auditors
To help all employees raise their level of environmental awareness and to actively participate in environmental conservation activities, Sharp promotes environmental
education through three courses—“Master,”
“Expert” and “General.”
The “master” course fosters leaders who
serve as the pillars of environmental sustainability management based on their acquisition of comprehensive knowledge of technology, products and production fields. The
“expert” course provides training to help employees learn more about environmental legislative control and expertise concerning
special fields. The “general” course provides
e-learning and other training to all employees, or employees by job level (new employees, management, etc.), to help them acquire basic environmental knowledge and
improve awareness of the environment.
■ Environmental education and
training system
Training on Environmental
Legislative Control
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
Stepping up
Environmental Education
New training
As part of its efforts aimed at strengthening
adherence to environmental laws, the Environmental Protection Group began providing
training on environmental legislative control in
fiscal 2005.
Environmental legislative control aims conventionally to prevent air and water pollution,
but recently the focus has shifted to eliminating harmful chemical substances contained
in products, and to improving environmental
performance.
In fiscal 2005, on the heels of the latest
changes in domestic and overseas environmental legislative control, the Environmental
Protection Group held training at the Nara,
Mie and Hiroshima sites. The group will continue to provide such training to these sites
and others in the future.
Master
Environmental Master training
(Japan and overseas)
Expert
Integrated MS auditor training
S-EMS auditor training
(domestic non-production sites and
overseas production sites)
Environmental
legislative
control training
Recycling
training
SGC leader
training
General
In order to promote S-EMS, Sharp auditors
will require higher levels of auditing abilities
than those required by internal auditors for
ISO 14001. That’s why the Environmental
Protection Group established the S-EMS
Auditor Certification System, offering S-EMS
training seminars for auditors. Those who
completed the training seminars are registered as certified auditors. The number of
registered auditors has already surpassed
550 countrywide.
Basic environmental training
• New employee training
• New section chief training
• Overseas assigned employee
training
Company-wide
environmental training
(e-learning)
All domestic and
overseas employees
Training on environmental legislative control
at the Nara site
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ ISO 14001-certified sites (companies) ■ Examples of Sharp’s environmental education
Environmental and Social Report 2006 ■
28
Advancing Super Green Management
Introducing the Sharp Environmental
Management System (S-EMS)
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Environmental Accounting in Fiscal 2005
Sharp introduced environmental accounting in fiscal 1999 to provide a quantitative assessment of the costs and benefit of its environmental conservation activities, and it has applied the results to environmental sustainability management. Beginning last fiscal year, a disclosure format was adopted that is in line with the “Environmental Accounting Guidelines 2005” published by the Japanese Ministry of the Environment.
Environmental conservation costs
Economic benefit
Upon completion of large-scale investment in the Kameyama Plant, investment decreased approximately 60% from the previous fiscal year.
The costs for treating exhaust gas and wastewater accounted for most
of the expenses. However, due to expansion of production, expenses
concerning waste also increased.
As a result of energy-saving and resource-recycling measures, actual
benefit increased about 240 million yen. Reflecting the growth of electric power generation resulting from steady expansion of the photovoltaic power business, estimated benefit increased about 11 billion yen.
Classification of Environmental Conservation Activities
( ): Category based on Environmental Accounting Guidelines 2005,
Ministry of the Environment
Environmental
Conservation Costs
(Unit: ¥ million)
Description of Major Activities Investment Expenses
Environmental
Sustainability
Management
(management activities)
• Operation of environmental
management system
• Promoting environmental
sustainability management
• Environmental education activities
Economic
Benefit
(Unit: ¥ million)
Actual
Benefit
• Promoting closed-loop
recycling of plastic materials
0.5
1,337
–
–
Master
Expert
General
Number of employees
with environmental
education
–
Manufacturing
Reducing greenhouse
gas emissions
(global environmental
conservation)
• Introducing scrubbers for PFCs
• Installing photovoltaic power
systems
• Introducing energy-saving
equipment
391
Minimizing and
recycling waste
(recycling resources)
• Reducing waste discharge
and recycling waste into
valuable resources
• Recycling water
263
1,006
–
21,894
(Unit: ¥ million)
Green Seal products’ share of net sales
86.6%
Super Green products’ share of net sales
34.6%
Total amount of power generated by
photovoltaic power systems
CO2 emissions controlled by photovoltaic
power systems
Electric power saving from energy-saving
products
CO2 emissions controlled by energy-saving
products
369,618t-CO2
1,342
14,642MWh
337
Greenhouse gas emissions reduced by controlling electricity and fuel consumption
1,610
1,340
2,852
CO2 emissions controlled
97,147t-CO2
352
PFC emissions controlled
688,639GWPt
2,500
1,096
–
Recycled and reused water
1,719
4,289
–
–
117,485t
–
13,733km3
–
Waste recycled
Used copiers recycled
0
71
54
15
Total
35
∼
38
Observed environmental laws and regulations
Prevented air/water pollution and noise/vibration
Promoted risk management
Chemical substances properly managed and their discharge reduced
Reduced risk of soil contamination
Used home appliances (4 categories) recycled
(Unit: ¥ million)
23.3t
–
2,154t
–
36,320t
–
39
・
40
Environmental burden during distribution reduced
CO2 emissions controlled
• Expanding social contribution
activities
(Unit: ¥ million)
Waste recycled or sent for appropriate disposal
3,435
4,133t-CO2
15
310
–
Total 27,108
–
Environmental social contributions
0
2,374
60
11,808
–
2,490
–
31
∼
34
22
6,164t-CO2
Number of low-pollution vehicles introduced
Social Responsibility
–
20,193
Used PCs recycled
• Promoting collection,
recycling and proper
disposal of used products
–
877,951MWh
Collection, recycling and proper disposal of used products
Recycling/Logistics
(upstream/downstream)
See
page(s)
27
∼
30
–
–
–
68
484
4,827
Supplying environmentally conscious products
• R&D on basic environmental
technologies
Preventing
• Installing scrubbers
pollution
• Introducing exhaust gas
(preventing pollution)
treatment systems
Estimated
Benefit
Physical Effects
Promoting environmental sustainability management
• R&D on photovoltaic
power systems
Planning and Design
(R&D)
Environmental Conservation Effects
Estimated
Benefit
Number of employees who attended SGC
activities 51
・
52
24,761
Vocabulary
Sites covered
Environmental conservation costs
Overhead costs, personnel expenses and investment associated with environmental conservation activities, in addition to attendant
depreciation
Economic benefit
Actual benefit:
Economic effects that can be assessed in monetary terms, such as cost saving from energy-saving efforts and use of
recycled water, as well as the profits from the sale of valuable resources
Estimated benefit: Economic effects that can be assessed by converting what cannot be directly indicated in monetary terms into the
equivalent monetary amounts
Monetary equivalents of reduced greenhouse gas emissions and electricity savings from the use of photovoltaic
power generation and energy-saving products
(1) Reduced greenhouse gas emissions converted into equivalent monetary amounts: 3,630 yen/t-CO2
(25.46 euro/t-CO2)
(2) Electricity savings converted into equivalent monetary amounts: Unit cost of electricity: 23 yen/kWh
A total of 14 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 and Sharp Niigata
Electronics Corporation
29
■ Environmental and Social Report 2006
Period covered
April 1, 2005 through March 31, 2006
Referenced guidelines
Environmental Accounting Guidelines 2005 published by
the Ministry of the Environment, Japan
Sharp’s numerical values represent the relationship between its business activities and the environment, and they are used to enhance environmental
sustainability management. Those values are registered at all stages of Sharp business activities and form the basis of all measures that are proposed, as well as for analyzing and assessing business results. Sharp takes seriously its duty to reduce the burdens it places on the environment.
Flow of Sharp Group
business activities
INPUT
Energy consumption 24,517 TJ *1
Electricity
2,154 million kWh
Japan
1,876 million kWh
Overseas 279 million kWh
LPG
14,406 tons
Japan
12,542 tons
Overseas 1,864 tons
City gas
55.382 million m3
Japan
52.272 million m3
Overseas 3.11 million m3
Heavy oil, kerosene,
gas oil, gasoline
11,282 kl
Japan
8,941 kl
Overseas 2,341 kl
Recycled into new products, reused as new parts, closed-loop material recycling, etc.
PFCs purchased
Other
uses
Technological
development,
planning, design
Materials
procurement
OUTPUT
CO2 emissions
1.19 million t-CO2
Japan
952,000 t-CO2
Overseas 238,000 t-CO2
PFC emissions
Japan
343,000 GWPt-CO2
SOx emissions
Japan 33.9 tons
NOx emissions
Japan 135.9 tons
Drainage
Total
12.567 million m3
Japan
10.611 million m3
Overseas 1.956 million m3
Japan 2.92 million GWPt-CO2*2
Chemical substances
(PRTR) handled
Japan 6,375 tons
Water consumed
15.97 million m3
Japan 13.899 million m3
Overseas 2.071 million m3
COD
Japan 21.7 tons
(chemical oxygen demand)
Manufacture
Nitrogen discharged
Japan 152.0 tons
Phosphorous discharged
Japan 2.0 tons
Japan 133 tons
Packaging materials
Japan 22,838 tons
Final landfill disposal
Resources consumed
Japan and overseas
668,000 tons*3
Chemical substances (PRTR) Japan Released
14.1 tons
released and transferred
Transferred 140 tons
Logistics
Energy consumption
Japan
Vehicle fuel
10,179 kl*4
Product use
Energy consumption
22,827 TJ*
CO2 emissions
Japan 26,714 t-CO2
Total shipment weight
from the Logistics
Center
Japan 533,700 tons
CO2 reductions
187,000 t-CO2 *6
(445 million kWh)
CO2 emissions
978,000 t-CO2 *5
Weight of which that
was not recycled into
new products or
materials, or reused
Japan 12,244 tons
(four home appliances,
PCs, copiers)
5
Electricity
2,322 million kWh
RECYCLE
Material recycling
Amount of used home appliances
(4 kinds) recycled into new home
appliances (4 kinds)
Japan
36,320 tons
TVs
8,421 tons
Air conditioners
7,370 tons
Refrigerators
11,439 tons
Washing machines 9,090 tons
Amount of recycled copiers
Japan 2,154 tons
Amount of recycled PCs
Japan 23.3 tons
Recycling
Amount of closed-loop material
recycling of plastic
Japan 520 tons*7
*1 TJ=1012J
*2 Global warming potential. The value of the scale of impact on global warming converted into
CO2 weight.
*3 Total weight of products in the 15 major categories shipped in fiscal 2005 (estimate) and
waste generated from production sites.
*4 Estimate
*5 Estimate of annual energy used and amount of CO2 emitted by products in the 14
major categories shipped in fiscal 2005. Calculation based on each product’s energy
consumption rate.
*6 Amount of annual power generated (kWh) by Sharp’s solar cells shipped in 2005 and
CO2 reductions (t-CO2).
*7 For details, see page 32.
Environmental and Social Report 2006 ■
30
Advancing Super Green Management
How Business Activities Relate to the Environment
Sharp and the Environment
In
of Becoming an Environmentally Advanced Corporate Group
社Pursuit
会とシャープ
Developing Super Green Technologies
To realize the corporate vision of becoming a “Zero Global Warming Impact Company by 2010,” the development of superior
environmental technologies is an essential factor in the performance of products and devices, and the reduction of
environmental impact during production. That’s why Sharp is making efforts to develop its highest-priority environmental
technologies by envisioning them as “One-of-a-Kind Environmental Technologies” in line with its strategy for corporate-wide
technology development.
Objectives for Fiscal 2005
Achievements
Objectives for Fiscal 2006
Objectives for Fiscal 2008
● Promote closed-loop plastic material recycling;
use 500 tons of recycled plastic in new products
Approx. 520 tons of recycled
plastic used in new products
● Use 600 tons of recycled plastic in new
products
● Use 1,000 tons of recycled plastic
in new products
● Develop mass-production technology for
easy-release fasteners; use in communications
equipment
Used in chargers of cordless
handsets for home-use phones
● Develop easy-release fasteners for
audio/video equipment
● Use in audio/video equipment
● Establish LCD TV recycling technology;
develop recycling technology for LCD TV
cabinet materials
Developed recycling technology
for LCD TV cabinet materials
● Conduct verification tests on technology
to recover indium from LCD panels
● Implement technology for
recovering indium from LCD panels
Developing One-of-a-Kind Environmental Technologies
Sharp classifies environmental technologies
into two categories: 1) zero global warming
impact technologies and 2) environmental
conservation technologies. The latter is further divided into three fields: effective use of
resources, reduction of chemical substances, and health and cleanliness.
■ One-of-a-kind technological development fields that give birth to
Super Green Technologies
rming impact techno
global wa
logie
Zero
s
Reduction of CO2 emissions
(create energy, save energy)
Sharp recognizes the most important ones
as “one-of-a-kind environmental technologies” and is aggressively promoting their development in line with its strategy for corporate-wide technology development. Unique
technologies evolving from these developments, which contribute to environmental
conservation, are what Sharp calls Super
Green Technologies.
One-of-a-Kind
Environmental
Technologies
Eliminate use of
harmful substances
Health and
cleanliness
Effective use of resources
(reduce, reuse, recycle)
E n v ir
o n m e nta
l conservation techno
lo gie
s
Wastewater Treatment Technology Based on Micro-Nano Bubbles*1
In 2005, Sharp developed the world’s first
non-dilution technology to remove at least
90% of the nitrogen contained in wastewater
discharged from its semiconductor facilities.
It combined the company’s own system for
treating spent developer using microorganisms*2 with micro-nano bubble technology.
This new method combines Sharp’s microorganism treatment technique with micro-
nano bubble technology and a new microorganism culture that can double the concentration of microorganisms. The method activates the microorganisms that treat nitrogen
contained in wastewater without the need
for diluting. And because this system generates no sludge, it contributes to reducing the
amount of waste.
*1 Micro-nano bubble technology: Developed in the early
1980s by Professor Hirofumi Ohnari and others at the Tokuyama College of Technology, it shrinks bubbles that
are normally several millimeters in diameter to just a few
micrometers or nanometers. This technology is mainly
used for purifying water in dam reservoirs, and in aquaculture.
*2 Spent developer microorganism treatment system: Proprietary methods, including the use of microorganisms,
to purify spent developer. In 1999, received the International Trade and Industry Minister’s Prize, Recycling Promotion Achievement Award.
■ Non-diluting treatment of nitrogen in wastewater using micro-nano bubbles
(semiconductor plant at the Fukuyama site)
(1) Microorganism
treatment
(2) Oyster shell treatment
(3) Bincho charcoal/
bio-activated carbon
treatment
(4) Retreatment of
treated water
(5) Discharge after
fish monitoring
Activation and high concentration process for microorganisms
in the process (1) and (3) on the left
Before treatment
1. Microorganisms activated
After microorganisms
are increased and activated
Microorganisms
Micro-nano bubbles
Highly concentrated
microorganisms
Microorganisms activated by
micro-nano bubble technology
and new culture break down
main components
Oyster shells
Bincho charcoal Activated carbon
Oyster shells dissolve to
neutralize the fluid
Absorbed by charcoal,
and broken down by
microorganisms
2. Microorganisms concentrated
Retreat in another
wastewater treatment
process
Monitor safety using
environmental changesensitive killifish and
roaches
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Environmental technology development examples
31
■ Environmental and Social Report 2006
Ammonia
(NH3), etc.
Optimize the quality
and conditions of
microorganism culture
Approx. 5,000 ppm
10,000 ppm or higher
Micro-nano bubbles
waste plastic (polypropylene) jointly with
Starlite Co., Ltd., as well as a plant-based
paint*2 jointly with Kansai Paint Co., Ltd.
In 1999, Sharp began to develop a technology for recycling closed-loop plastic. It reuses
scrap plastic from four types of home appliances*1 as material for the manufacture of
new units, recycling the same material repeatedly. In fiscal 2005, consumption of recycled plastic was boosted to about 520
tons.
With these technologies, Sharp is steadily reducing its reliance on plastic using fossile
fuels by repeated recycling and by blending
them with materials derived from plants.
*1 Four home appliances: air conditioners, TVs, refrigerators and washing machines.
*2 See pages 17 and 18.
Sharp developed a technology to blend
plant-based plastic (polylactic acid) and
■ Closed-loop plastic material recycling flow
Product use (user)
New products
Product collection
Disassembly
Material evaluation, evaluation of remaining lifespan, moldability
(flowability) evaluation, physical properties evaluation, review and
determine formulation to improve properties
Developing Easy-Release
Technology
Since fiscal 2003, Sharp has been working
in collaboration with NEC Tokin Corporation,
Union Seimitsu Co., Ltd. and Tokai University in Japan to develop mass-production
technology for parts that are easy to disassemble for recycling. The resulting fastener
consists of a screw and a washer that are
made of TiNi* shape-memory alloy. The
washer remains securely fastened in use
(Fig. 1) but expands when heated (Fig. 2),
enabling the two combined pieces to come
apart easily (Fig. 3).
In fiscal 2005, Sharp applied this easy-release fastener to chargers of cordless handsets for phones (CJ-N77CL/N773W). Sharp
plans to develop its applications to include
home appliances in the future.
* TiNi: Alloy made of titanium and nickel
Molding and assembly
of plastic parts
Plastic parts
recovery
■ Sharp-memory alloy and automatic
disassembly with application of heat
Product design
Pelletization
Melting/extrusion
Mixing with
additives
Cleaning
Placing into
crusher
■ Closed-loop plastic material recycling target and results (fiscal 2006)
Washing machine
Used parts
TV
Washtub
Polypropylene
Recycled
as
Technologies
Fig. 1
FY2001 FY2002 FY2003 FY2004 FY2005
FY 2006
(target)
•Adjust properties
•Improve lifespan
Washing
machine tub
40
80
190
180
180
180
•Adjust moldability
•Adjust properties
•Improve lifespan
Refrigerators
parts
–
–
–
80
80
80
Refrigerators
parts
–
–
50
65
140
160
Rear
cabinet
Polypropylene
•Sort nonincombustible PP
•Improve lifespan
•Improve heat
resistance
Air conditioner
parts
–
–
10
20
10
5
Refrigerators
parts
–
–
15
40
20
15
•Adjust physical
properties
•Improve lifespan
•Sort materials
•Adjust physical
properties
•Improve lifespan
Refrigerators
parts
–
–
–
35
90
160
Air conditioner
and refrigerator
parts
–
–
5
–
–
–
Total
40
80
270
420
520
600
■ Technology for blending plant-based plastic and waste plastic
Simple blend Blending with a compatibilizer When PLA and PP are mixed using conventional methods
Microphotograph
PP
Separation at
boundary surfaces
PP
PLA
PLA is micro dispersed as a result of blending with a compatibilizer
Schematic diagram of
compatibilizer at work
Plant-based plastic (polylactic acid [PLA]) and
waste plastic (polypropylene [PP]) tend to be
mutually incompatible, causing a gap to form at
their boundary surfaces and leading to a significant loss of physical properties, such as impact
resistance and thermal resistance.
Microphotograph
PP
PLA
Schematic
drawing
Gap
PLA is micro
dispersed
PLA block
Disassembly
Used LCD TV
•Adjust moldability
•Improve lifespan
Shelf plate Polystyrene
Fig. 3
Cool
Heat
Polypropylene
Polypropylene
Fig. 2
Quantity of recycled material used (ton/year)
Spin tub/
balancer
Vegetable
case
Refirigerator
Material
type
Polyester block PLA block
: Section readily compatible with PLA
: Section readily compatible with PP
PP
PLA
Polyester block
Schematic
drawing
PLA block
Recycling Technology for
LCD Application Products
Since fiscal 2003, Sharp has been engaged
in developing technology for LCD applications, with guidelines formulated for recycling
LCD panels and for the safe removal of mercury backlights.
In fiscal 2005, Sharp developed a technology for recycling plastic used in LCD TV cabinets*. Sharp will promote the development
of technologies that will bring LCD TV recycling into full practice in Japan in the immediate future.
* Cabinet materials are PC (polycarbonate), ABS
(acrylonitrile butadiene styrene) and phosphatic
flame retardant.
Adding compatibilizer causes PLA to minutely
disperse. The section of the compatibilizer that
is readily compatible with PLA moves to the
PLA side, while the section readily compatible
with PP moves to the PP side. The gap between the surface boundaries is eliminated,
thereby improving physical properties.
Environmental and Social Report 2006 ■
32
Developing Super Green Technologies
Development of Closed-Loop Plastic Material Recycling Technology
Sharp and the Environment
In
of Becoming an Environmentally Advanced Corporate Group
社Pursuit
会とシャープ
Creating Super Green Products and Devices
Sharp continually enhances the environmental performance of its products and devices by annually revising and upgrading its
guidelines as it aims for increasingly stricter standards and higher goals. As a result, the ratio of Green Seal Products, Super
Green Products and Green Devices to total net sales has increased, and Super Green Devices reached their targeted sales ratio
for the first year in fiscal 2005.
Objectives for Fiscal 2005
Achievements
Objectives for Fiscal 2008
Objectives for Fiscal 2006
● Green Seal Products accounting for 80% of net sales in Japan
● Super Green Products accounting for 20% of net sales in Japan
● Approx. 87%
● Approx. 35%
● 85%
● 30%
● 90%
● 40%
● Green Devices accounting for 40% of net sales
● Super Green Devices accounting for 5% of net sales
● Approx. 51%
● Approx. 7%
● 65%
● 10%
● 85%
● 20%
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.” Sharp
formulated the “Green Product Guidelines” in
December 1998, defining specific design
targets and design know-how in line with
seven concepts. The guidelines are used at
all design and production sites in Japan and
overseas.
The first step in developing Green Products
is product planning, where Sharp applies its
guidelines to design a product that is environmentally superior in every aspect. Sharp
then sets specific objectives according to
the assessment items of the Green Product
Standard Sheet. Finally, in the trial manufacture and mass production stages, Sharp determines how well the actual product has
met the objectives set out for it.
In fiscal 2005, Green Products had to satisfy
at least 90% or more of 48 assessment
items, a standard that was met by all of
Sharp’s new products.
Certification of Green Seal Products and Super Green Products
in Japan
Since April 1998, Sharp has been certifying
products for Japan, which offer a particularly
high level of environmental performance, as
“Green Seal Products.” Since October 2004,
Sharp has begun certifying Green Seal Products with still higher environmental performance as “Super Green Products.”
The certification standard of Green Seal
Products demands a product that satisfies
all four items required by the Environmental
Performance Criteria and at least one item in
the External Environmental Claim Standards,
and that scores 70 points or higher out of a
total 100 points in the Environmental Performance Criteria. The certification standard for
Super Green Products is higher still, when
compliance with the EU RoHS directive* and
acquisition of the Japanese Eco Mark are
added, and products must score 90 points
or higher in the Environmental Performance
Criteria.
In fiscal 2005, both Green Seal Products and
Super Green Products exceeded their initial
targets for percentage of total sales. In the
coming years, Sharp plans to raise these
percentages still higher.
■ Assessment and certification standards for Green Seal Products and Super Green
Products in Japan (fiscal 2005)
Category
Green Seal Products
Super Green Products
Level of
• Satisfies at least one item of the External
environmental
Environmental Claim Standards
consciousness
Environmental
Performance
Criteria
(total
score: 100)
• Is significantly more environmentally conscious
than the products of other companies
• Satisfies four required items of the
Environmental Performance Criteria
• Meets the RoHS directive
• Has environmental label status
• Satisfies four required items of the
Environmental Performance Criteria
Prevents global warming
Low power consumption,
high energy efficiency, etc.
20 points
Makes effective use of
resources
Designed for recyclability,
resource saving, etc.
20 points
Uses substitutes
for toxic chemicals
Meets the RoHS directive
At least 70 points
All conditions under sections
and
must be satisfied.
■ Sharp Green Product concept
Low energy
consumption
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.
Safety
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.
Resource
reduction
Products that use minimum resources
Make products that use less water and detergent, and
reduce the amount of materials used in products and
packaging.
Recycle
Recyclable products
Choose materials that can be easily recycled or reused
in products, and label the type of material used.
Use recycled
materials
Long life
usability
Easy to
disassemble
33
Products made from recycled materials
Use recycled plastic and reuse parts in making
products.
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.
■ Environmental and Social Report 2006
35 points
Other
Has environmental label
status, uses minimum
packaging materials, etc.
25 points
At least 90 points
* 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 entering the EU market after July 1, 2006.
■ Sharp concept of environmentally
conscious products
Improved
Super Green
Products
Green Seal Products
that are extremely
environmentally conscious
Improved
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
(Sharp’s own
environmental label)
(%)
Certification of Green Devices
and Super Green Devices
100
87
90
85
80
Green Seal Products
74
80
70
65
60
54
50
50
43
40
32
Super Green Products
35
40
30
30
30
20
20
10
10
5
0
2001
2002
2003
2004
2005
2006
(fiscal year)
Results
Target
The percentage for Super Green Products in fiscal 2004 represents
only the second half of that year.
■ Four required items in the Environmental
Performance Criteria in Japan (fiscal 2005)
Items
Detail
Energy saving
• Lower power consumption and standby power
consumption than previous models
3R
• Easy separation and disassembly, or is upgradeable
Safety
• Uses lead-free solder in more than one circuit board
Packaging
• Abolishes the use of polystyrene foam
(for products weighing less than 10 kg)
• Increases the ratio of recycled materials, or uses less
packaging material than previous models
(for products weighing 10 kg or more)
■ Green Seal Products External Environmental
Claim Standards (fiscal 2005)
Others
Eco
Mark
Safety
3R
Energy saving,
energy creating
Items
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
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)
Green materials
• Abolishing use of halogen-based flame retardants,
substituting polyvinyl chloride
• Use of refrigerant with low global warming potential
• Use of no RoHS-designated substances
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
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 applying in April 2004. In fiscal 2005, Sharp began developing devices
with still higher standards of environmental
performance, ones that even surpass those
of Green Devices. These devices are what
Sharp calls “Super Green Devices.”*
The development of Green Devices begins at
the planning stage, where the environmental
consciousness of the product is discussed in
every aspect. Sharp then sets specific objectives based on the assessment items of the
Green Device Standard Sheet. Finally, in the
trial manufacture and mass production stages, Sharp determines how well the actual
product has met the objectives set out for it.
In fiscal 2005, both Green Devices and Super
Green Devices exceeded their sales ratio targets. In the coming years, Sharp plans to
raise these figures still higher.
* Certification standards for Green Devices and Super
Green Devices in fiscal 2005: Green Devices must satisfy at least 90% or more of all 21 assessment items (9
of which are compulsory) listed in the Environmental
Performance Criteria. Super Green Devices must satisfy at least 95% or more of the 21 assessment items
(10 of which are compulsory) listed in the Environmental Performance Criteria. 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. A number of Super Green Devices were developed in fiscal 2004 which complied with these fiscal
2005 standards.
■ 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
Reduce packaging materials
Information
disclosure
Provide information on chemical
substances in devices
Start of Comprehensive
Product Environmental
Evaluation System
Sharp combined the know-how it accumulated while developing and assessing environmentally conscious products and devices
with its know-how of LCA (life cycle assessment) to create its “Comprehensive Product
Environmental Evaluation System.” It was installed on Sharp’s in-house intranet in March
2005.
Going online makes the development process more efficient, while the compilation of
databases from design know-how and development data facilitates LCA and feedback
to the next development. Thus, Sharp is
able to promote environmentally conscious
designs and improve accuracy in design and
assessment.
In April 2006, Sharp began operation of this
system in all domestic product and device
groups, and plans to introduce it into overseas design and production bases within fiscal 2006.
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.
In fiscal 2003, Sharp formulated its “Survey
Manual for Chemical Substances in Parts
and Materials” and investigated chemical
substance content as determined by the Japan Green Procurement Survey Standardization Initiative (JGPSSI).* The company also
took measures toward eliminating RoHSdesignated substances. Sharp eliminated
RoHS-related substances in all products for
Europe by the end of 2005 and in new products, except for a few products for some
areas, by March 31, 2006.
In fiscal 2005, Sharp revised the Green Procurement Guidelines and the Survey Manual
for Chemical Substances in Parts and Materials, and it introduced an online survey response system. In fiscal 2006, Sharp plans
to introduce these measures to overseas
production sites.
* A council comprising 5 organizations and 86 companies, mainly electronics manufacturers including Sharp
Corporation, which works to standardize research on
chemical substances in parts and materials.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Green Products ■ Green Devices ■ Green Procurement assessment items
Environmental and Social Report 2006 ■
34
Creating Super Green Products and Devices
■ Ratio of Green Seal Products and
Super Green Products to total net sales
Sharp and the Environment
In
of Becoming an Environmentally Advanced Corporate Group
社Pursuit
会とシャープ
Building Super Green Factories
Sharp is raising environmental awareness at its production sites all over the world. Using proprietary 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 plans to convert all domestic and overseas Sharp Group production sites into Green Factories or
higher by fiscal 2007.
Objectives for Fiscal 2005
Achievements
Sharp Corporation production sites: 10 (two SGFs and 8 GFs achieved by fiscal 2004)
● Raise average improvement rate of environmental
performance by 11% compared to fiscal 2003
Approx. 16% ● SGF 5 GF
Domestic production sites (subsidiaries and affiliated companies): 7
● GF 4 GF
3 ● GF
Overseas production sites (subsidiaries and affiliated companies): 22
● GF 4
SGF
1
Upgrading All Plants to
Green Factories
At Sharp, a factory must achieve a high degree of environmental consciousness to earn
the title of “Green Factory.” The “Green Factory Guidelines” formulate the basic policies
and operational know-how for realizing a
Green Factory in line with 10 concepts.
These guidelines were introduced to 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 plans to upgrade all Sharp Corporation
production sites to Super Green Factories
and all other Sharp Group production sites to
Green Factories or higher by fiscal 2007.
■ Green Factory concept
Greenhouse
gases
GF
7
5
● All GF or higher
● SGF 1 GF 14
● All GF or higher
Minimize emission of greenhouse gases
Certification of Green Factories and Super Green Factories
Assessment and approval follow 21 quantified environmental performance criteria grouped into five major categories. 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.
When new factories are built, environmental
impact assessments are incorporated at the
early planning stages to achieve Super
Green Factory status. Moreover, Sharp is
continually improving environmental performance at its existing plants as step-by-step
upgrading.
Fiscal 2005 saw overseas production sites
dramatically improve their environmental performance and the number of plants to achieve Green Factory status exceed the initial
target. Of special note is SMF, Sharp’s office
equipment manufacturing plant in France,
which was certified as the first Super Green
Factory overseas (see pages 15 and 16).
■ Twenty-one quantified environmental performance criteria and assessment weighting
Release
reductions of
chemical
substances
Reductions in
greenhouse gas
emissions
• 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 reductions in
emissions per production unit
• Implementation of managerial
decision making standards
• PRTR atmospheric
emissions
• PRTR water emissions
• Sulfoxide produced by
combustion
• Eliminate all noxious
odors
Appropriate
disposal of
industrial waste
• Zero discharge to landfill
• Confirmation of
appropriate disposal
• Recycle waste as
valuable resources
Energy
Minimize energy consumption
Waste
Minimize discharge of waste
Assessment
weighting
Resources
Minimize resource consumption
■ Process required to achieve Super Green Factories
Chemical
substances
Minimize risk of environmental
pollution and accidents caused by
chemical substances
30
26
New factories
Atmosphere,
water, soil
Harmony
with nature
● All SGF
5
GF:Green Factory
Environmental performance criteria
SGF:Super Green Factory
Objectives for Fiscal 2007
Objectives for Fiscal 2006
Minimize environmental burden on the
atmosphere, water and soil
Endeavor to preserve nature both on
and off site
Harmony with
the community
Encourage harmony with the
local community
Environmental
consciousness
High environmental awareness among
employees
Reductions in the Monitoring, safety
consumption of
and information
industrial water
disclosure
• Use of rain condensation
water
• Recovery of production
rinse water
14
• Disaster and fire
prevention measures for
hazardous materials
• Special safety measures
• Adoption of central
monitoring measures
• Disclosure of
environment-related
information
9
21
Existing factories
Green Factory Concept
+
Approach based on environmental
impact assessments
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
Information
disclosure
Disclose information on the environment
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Green Factories
35
■ Environmental and Social Report 2006
90 points or more
Super Green Factory
90 points
or more
Super Green Factory
70 points
or more
Green Factory
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Reducing Greenhouse Gas Emissions
Sharp is taking active measures to restrict greenhouse gas emissions resulting from its business activities. In addition to
reducing energy consumption by introducing cogeneration systems and energy-saving equipment, installing photovoltaic
power systems, as well as through meticulous energy-saving activities at plants and offices, Sharp is also reducing greenhouse
gas emissions such as PFCs*1 by installing scrubbers and using replacement gases with less global warming potential.
CO2 emissions per production unit*2
● Domestic product sites: Reduce by 2% from previous fiscal year
● Domestic device sites: Reduce by 5% from previous fiscal year ● All overseas production sites: Reduce by 2% from previous fiscal year
Achievements
Objectives for Every Fiscal Year
Objectives for Fiscal 2010
Approx. 12% reduction
Approx. 2.5% increase
Approx. 15% reduction
● Reduce by 2% from previous fiscal year
● Reduce by 5% from previous fiscal year
● Reduce by 2% from previous fiscal year
CO2 emissions per real production unit*3
● All domestic production sites: Reduce
by 25% compared to fiscal 1990
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.”
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.
*2 Per production unit (t-CO2/100 million yen) = CO2 emission (t-CO2) ÷ production output (100 million yen)
*3 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}
Controlling CO2 Emissions
Controlling PFC Emissions
In fiscal 2005, the Sharp Group reduced its
greenhouse gas emissions per production
unit by 11% compared to the previous fiscal
year. It also tried to offset increases in CO2
emissions resulting from production expansion through energy-saving measures and a
large reduction of PFC emissions. However,
the launch of Sharp Yonago Corporation
slightly increased the total amount of greenhouse gas emissions from the previous fiscal
year.
Sharp’s efforts to achieve Green Factory status have produced results at overseas production sites. CO2 emissions per production
unit have been reduced largely by approximately 15% over the previous fiscal year. In
Japan, Sharp reduced CO2 emissions by
around 12% at product sites. The company
was able to marginalize the increase of CO2
emissions at device sites despite a large fall
in shipped prices resulting from changing
market conditions.
Sharp reduced emissions of non-CO2 greenhouse gases like PFCs and SF6 by approximately 20% from the previous fiscal year by
switching to gases with lower global warming potential and introducing scrubbers to
decompose greenhouse gases. For decomposing greenhouse gases, Sharp adopted
optimum treatment methods depending on
the type or quantity of gases used, thereby
achieving a decomposition efficiency rate of
more than 90%.
In future, the Sharp Group will work harder
to control emissions and fulfill its corporate
vision of “zero global warming impact by
2010.”
Sharp will continue working aggressively to
reduce CO2 emissions by introducing energy-saving equipment, fuel conversion and
photovoltaic power systems.
Sharp has installed scrubbers to decompose
greenhouse gases in all PFC emission sources at the Kameyama Plant, where production continues to expand, as a measure to
eliminate emissions.
■ 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
Per production unit (t-CO2/100 million yen)
Emissions of greenhouse gases (t-CO2)
1,800,000
800,000
82.9
1,415,398
1,400,000
1,200,000
1,435,627
63.4
1,486,822
427,893
1,532,745
80.0
342,994
70.0
70.0
800,000
500,000
155,085
168,579
34.1
33.3
613,391
690,329
834,838
2002
CO2 emissions (domestic sites)
2003
2004
CO2 emissions (overseas sites)
Sharp Group’s emissions per production unit
0.0
2005 (fiscal year)
PFC emissions
Overseas emissions per production unit
Per production unit is calculated from production-related emissions.
Figures include Sharp Yonago Corporation as of June 2005.
Figures exclude domestic company dormitories as of fiscal 2003.
41.2
37.8
33.7
717,006
632,536
30.0
449,914
200,000
344,987
100,000
6.4
393,127
20.0
20.0
10.0
2001
40.3
40.0
367,127
30.0
492,700
200,000
50.0
300,000
28.3
951,896
400,000
415,682
400,000
40.0
35.3
60.0
473,421
44.5
50.4
195,018
32.4
61.2
58.0
600,000
50.0
224,090
655,611
60.0
237,855
1,000,000
0
700,000
59.7
550,280
557,853
739,285
62.2
56.6
1,205,638
633,428
600,000
80.0
72.5
77.6
1,600,000
Per production unit (t-CO2/100 million yen)
CO2 emissions (t-CO2)
90.0
0
10.0
4.8
3.7
4.1
22,140
22,555
23,507
23,075
2001
2002
2003
2004
CO2 emissions from product production
3.6
22,279
0.0
2005 (fiscal year)
CO2 emissions from device production
Emissions per production unit of devices
Sharp Corporation’s emissions per production unit
Emissions per production unit of products
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Examples of reductions in greenhouse gases ■ Data on greenhouse gases
Environmental and Social Report 2006 ■
36
Building Super Green Factories / Reducing Greenhouse Gas Emissions
Objectives for Fiscal 2005
Sharp and the Environment
社Pursuit
会とシャープ
In
of Becoming an Environmentally Advanced Corporate Group
Minimizing and Recycling Waste
Sharp has been working to bring down its total amount of waste discharged*1 and to recycle waste as much as possible.
As a result, domestic production sites (including subsidiaries and affiliated companies) as a whole have achieved zero discharge
to landfill*2 for five consecutive years. Sharp will keep up its efforts to continue zero discharge to landfill and reduce waste
discharge. In addition, Sharp is focusing on recycling wastewater and restricting the amount of water utilized.
Objectives for Fiscal 2005
Achievements
Objectives for Every Fiscal Year
Domestic production sites (including subsidiaries and affiliated companies):
Recycled approx. 13% of waste
Recycle waste into valuable resources
into valuable resources
● Recycle 14% of waste into valuable resources*3
Amount of waste discharged per production unit
● Reduce by 3% from previous fiscal year
Overseas production sites (subsidiaries and affiliated companies):
Amount of waste, etc. discharged per production unit
● Reduce by 2% from previous fiscal year
Amount of waste, etc. discharged per production unit
● Reduce by 2% from previous fiscal year
Reduced by approx. 17% from previous
fiscal year
*1 Amount of waste discharged = Amount of industrial waste discharged + amount of general waste discharged
from business activities
*2 Sharp defines “zero discharge to landfill” as a final landfill disposal rate of less than 0.5%. Final landfill disposal
rate (%) = Amount of landfill disposal / amount of waste, etc. discharged (amount of waste discharged +
amount of valuable resources) x 100
In fiscal 2005, to make the definition of zero discharge to landfill more rigorous, Sharp changed the denominator
from “total amount of waste generated” to the lower “amount of waste, etc. discharged (amount of waste
discharged + amount of valuable resources)”.
*3 Recycling rate of waste into valuable resources (%) = Amount of valuable resources*4 / amount of waste, etc.
discharged (amount of waste discharged + amount of valuable resources) x 100
*4 In revising the definition of the “amount of valuable resources” in fiscal 2005, Sharp only considers materials that
report profits after deducting recovery and transportation costs.
Domestic Production Sites Achieve Zero Discharge to Landfill for 5 Years in a Row, Overseas Sites
Reduce Amount of Waste, etc, Discharged by 17%
The total amount of waste, etc. discharged
by the Sharp Group in fiscal 2005 increased
by 17% over the previous fiscal year due in
part to production expansion at the Kameyama and Mie Plants, as well as the start of operation at Sharp Yonago Corporation. However, thorough recycling of waste brought the
final landfill disposal rate down to 0.03%,
making it five years in a row that Sharp has
achieved zero discharge to landfill at its domestic production sites (including subsidiar-
ies and affiliated companies) since fiscal
2001.
amount of waste, etc. discharged per production unit by 17% over the previous fiscal year.
Although the domestic recycling rate of
waste into valuable resources stood at
13.4%, marginally lower than the target, the
amount of valuable resources increased by
2,748 tons over the previous fiscal year.
From fiscal 2006 and onward, Sharp will continue recycling waste and converting it into
valuable resources at domestic sites, aiming to
reduce the amount discharged per production
unit by 3% annually. At overseas sites, Sharp
will continue aiming to reduce the amount of
waste, etc. discharged per production unit by
2% annually.
■ Amount of waste, etc. discharged from
Sharp Group
■ Amount of waste discharged
(per production unit) and valuable
resources at domestic production sites
■ Amount of waste, etc. discharged (per
production unit) from overseas production
sites (subsidiaries and affiliated companies)
(tons)
(tons)
(tons)
Per production unit (ton/100 million yen)
200,000
150,000
100,000
5.8
135,650
5.0
93,612
31,818
103,832
50,000
Per production unit (ton/100 million yen)
8.0
200,000
6.0
150,000
32,553
4.9
4.6
Japan
2003
Overseas
2004
5.3
200,000
6.0
150,000
125,711
2.0
0.0
2005 (fiscal year)
Per production unit
85,853
4.0
100,000
50,000
0
13,411
2.0
50,000
0
2003
Waste discharged
2004
Valuable resources
16,159
2005 (fiscal year)
0.0
Per production unit
6.0
5.2
4.0
Recycling Water
(1000 m3)
30,371
2003
2004
Waste, etc. discharged
31,551
2.0
0.0
2005 (fiscal year)
Per production unit
15,970
15,000
■ Amount of water supplied, wastewater,
and recovered and recycled water at
domestic production sites
(1000 m3)
14,000
20,000
The Sharp Group, particularly the Kameyama and Mie Plants, carried out thorough recovery and recycling of water, increasing the
amount of water recovered and recycled by
16% over the previous fiscal year. As a result, despite a considerable increase in production, the Sharp Group was able to restrict the amount of water used to a marginal
increase. Sharp will continue aiming for effective use of water resources into the future.
0
25,690
The amount of waste discharged in fiscal 2003 includes the amount of valuable resources.
Figures include subsidiaries and affiliated companies as of fiscal 2004.
Figures include Sharp Yonago Corporation as of June 2005.
■ Amount of water used by Sharp Group
13,792
1,666
14,988
2,034
2,071
13,668 13,945
12,738
12,000 11,937
10,000
12,015
10,717
10,121
9,984
10,380
2004
2005 (fiscal year)
8,000
10,000
6,000
12,126
12,954
13,899
4,000
5,000
2,000
0
0
Japan
2003
2004
2005 (fiscal year)
Overseas
Figures include Sharp Yonago Corporation as of June 2005.
2003
Water supplied
Wastewater
Recovered and recycled water
Figures include subsidiaries and affiliated companies as of fiscal 2004.
Figures include Sharp Yonago Corporation as of June 2005.
Information on Web site http://sharp-world.com/corporate/eco/report2006
■ Examples of reductions in the discharge of waste ■ Data on waste ■ Examples of effective water use ■ Data on water usage
■ Environmental and Social Report 2006
5.4
64,430
Figures include non-production sites.
Fiscal 2003 figures do not include domestic production subsidiaries and
affiliated companies.
Figures include Sharp Yonago Corporation as of June 2005.
37
8.0
4.3
104,547
100,000
66,460
0
Per production unit (ton/100 million yen)
8.0
5.8
158,265
4.0
27,152
At the same time, significant progress was
made in the campaign to realize Green Factories overseas. Production sites reduced the
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Effectively Managing Chemical Substances,
Conducting Risk Management
Sharp ensures the unified control and management of consumption and discharge of all chemical substances used through its
chemical substance management system. Sharp reduces discharges of chemical substances placed under high-priority control
and promotes a preferential reduction in chemical substances with greater impact on human health by conducting risk
assessment. Sharp also discloses risk information and promotes good risk communication with local communities.
Achievements
Reduced by approx. 48%
compared to fiscal 2003
Objectives for Fiscal 2006
Objectives for Fiscal 2008
● Reduce by 55% or more compared
to fiscal 2003
● Reduce by 60% or more compared
to fiscal 2003
*1 Discharge risk: Total of all numerical values assigned to each chemical substance released into the atmosphere. Values are calculated as per: Discharged amount (concentration at site boundary) X Risk to
human health coefficient
Effective Management of
Chemical Substances
Risk assessment audits are mandatory when
new chemical substances are introduced as
well as when handling equipment is installed,
taking the environment, safety and health
into account. Sharp also provides education
and training programs and conducts audits
on the environment and safety. Through
these measures, accidents are prevented
and environmental impact is reduced.
For all 10 Sharp Corporation domestic production sites and 15 out of 22 overseas production sites, Sharp has introduced S-CMS
(Sharp Chemical Management System), and
it conducts centralized management of the
quantities of all chemical substances consumed or discharged.
Sharp also reduces discharge of and conducts appropriate management of chemical
substances placed under high-priority control (460 chemical substance groups, including 354 substance groups specified by the
PRTR*2 Law and 106 additional ones, such
as hazardous air pollutants).
*2 PRTR: Pollutant Release and Transfer Register.
A system to collect and publicize data, such as
the amount of harmful chemicals handled and
discharged.
■ Destinations of PRTR-covered
chemical substances in Japan
(Sharp Corporation)
Discharge into
atmosphere (0.1%)
Transfer to waste
(2.1%)
Discharge to water
areas (0.1%)
Consumption
(0.85%)
Transfer to
sewers (0.05%)
Treatment
(10.5%)
Recycle (86.3%)
Reducing Chemical Substance
Emissions and Discharge Risks
Of the chemical substances covered by the
PRTR Law, the number of chemicals handled in quantities greater than 500 kg in fiscal 2005 at all Sharp Corporation production
sites in Japan amounted to 16 substances
or 6,354 tons (up 55% over the previous fiscal year). Although the use of PRTR chemicals increased when production went up,
emissions fell by 9% to 12.4 tons from the
previous fiscal year by thoroughly treating
and recycling harmful substances.
In 2005 Sharp introduced the concept of risk
assessment, and has promoted a preferential reduction in chemical substances with a
greater impact on human health. In fiscal
2005, discharge risks were reduced around
48% over fiscal 2003.
In the current fiscal year, Sharp is stepping
up reduction of VOCs (volatile organic compounds), which are handled in large volumes, in order to comply with regulations
enacted this April in Japan. Further reductions of chemical substances are being implemented.
Risk Communication and
Information Disclosure
Sharp has selected and trained “risk communicators” at each domestic site, who disclose risk information associated with business activities and promote communication
through mutual understanding among Sharp,
neighboring residents and the local government. Sharp also discloses information with
environment exhibitions at Sharp Festivals
and the publication of site reports at each
site.
A survey conducted in 1998 on soil and
groundwater identified chlorine solvent pollution within the Nara, Yao, Tenri and Katsuragi
sites. With the exception of the Nara site, all
sites have reduced contamination levels to
lower than those of the environmental standard via biotechnology. Sharp is continuing
purification at the Nara site, and regularly notifies local municipalities and residents of the
cleanup progress.
Sharp’s Large-Scale IC Group received the grand
prize at the 2005 PRTR Awards in Japan, sponsored by the Center for Environmental Information
Science, in recognition of its continuous risk communication with the local community.
■ Chemical substances released by Sharp Corporation into the
atmosphere and water areas in Japan
Main chemical substances
Amount of
Amount of
release Proportion release (tons)
in FY2004
(tons) in
(%)
(reference)
FY2005
Hydrogen fluoride & its water-soluble salts
8.7
69.7
9.3
2-Aminoethanol
1.8
14.3
1.9
Xylene
0.6
4.7
0.5
2-Ethoxyethyl acetate
0.6
4.5
1.0
Phenol
0.4
3.0
0.5
1,3,5-Trimethylbenzene
0.3
2.8
0.4
Others
0.1
1.0
0.1
Destination
Water areas
The atmosphere
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Data on chemical substance management ■ Data on the atmosphere and water quality
Environmental and Social Report 2006 ■
38
Minimizing and Recycling Waste / Effectively Managing Chemical Substances, Conducting Risk Management
Objectives for Fiscal 2005
● Reduce discharge risk*1 by 30% or more
compared to fiscal 2003 at Sharp Corporation
production sites in Japan
Sharp and the Environment
社Pursuit
会とシャープ
In
of Becoming an Environmentally Advanced Corporate Group
Environmentally Conscious Logistics and Packaging
After the revision of the Law Concerning the Rational Use of Energy in Japan in fiscal 2005, further energy-saving measures are
sought in the distribution sectors. In cooperation with shipping contractors, Sharp is working to reduce environmental impact
by creating a system to accurately assess environmental impact in distribution and taking as many measures as possible to
optimize transport methods and load efficiency.
Objectives for Fiscal 2005
Achievements
● Domestic railway cargo transport
(container transport): 900 containers/month
● Reduce 3,500 t-CO2 of CO2 emissions in Japan
Objectives for Fiscal 2006
the entire distribution process.
In the future, Sharp will also develop these
measures for use at overseas sites, creating
a global energy-saving distribution system
that includes international transport and
transport within local overseas areas (production and sales bases).
* Distribution of parts used for after-sales service,
such as repair and maintenance of products.
■ Energy-saving promotion system in distribution
Management Strategy Conference
Environmental Protection Group (Environmental Strategy Conference, etc.)
Committee to Deal with Energy-Saving Law as a Shipper
Office
(procurement distribution
and production distribution)
Global Logistics Center
(sales distribution)
Environmental
Protection Group
(waste distribution)
CS Promotion Group
(parts distribution)
3R of Secondary Distribution
Materials
Changing Modes of Transport
Sharp is shifting from transportation by truck
to transportation by more environmentally
friendly means in Japan; for example, transport by railway and ships.
In fiscal 2005, Sharp made an average of
963 railway transport trips a month. This resulted in CO2 emission reductions of
4,133 t-CO2 per year (a 30% increase over
the previous year) compared to transportation by truck.
The Hiroshima branch of Sharp’s Nishinihon
Logistics Center was commended as an
“Excellent Shipper in Shifting Transportation
Mode*” for two years in a row for increasing
the ratio of mobile phones transported by rail
to 71.3% (from 66.0% in the previous fiscal
year).
Sharp will continue shifting transportation
modes and change from air transport for import and export cargos to a new means of
transportation such as high-speed vessels.
■ Railway container shipments and
CO2 reduction in Japan
(Rail container units/month)
■ Environmental and Social Report 2006
(t-CO2)
1,200
4,133
4,500
4,000
1,000
3,500
3,170
800
3,000
2,634
2,500
600
963
1,568
400 1,203
770
577
200
0
255
311
2001
2002
2,000
1,500
1,000
500
2003
Rail container units
0
2004 2005 (fiscal year)
CO2 reduction volume
* A system to commend shipper sites that have actively promoted shifting transportation modes,
sponsored by the Chugoku Modal Shift Promotion
Council and the Chugoku District Transport Bureau.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Data on packaging materials used
39
Sharp is working to reduce total transportation distances by improving load efficiency
as it maximizes the volume of each cargo
shipped. It is also increasing direct delivery
from factories to consumer markets without
passing through distribution centers. Sharp
used to unload cargos shipped from production bases in China at Osaka Port, and
then transport them by truck to consumer
markets across the country. Since fiscal
2005, Sharp has begun dispersing the unloading of such cargoes at ports in the vicinity of large consumer markets, located in the
Tokyo Metropolitan area, Osaka, Kyushu and
Hokkaido, and was thus able to reduce land
transportation distances.
Sharp is urging its shipping contractors to
introduce low-pollution vehicles, and is aiming to replace all business vehicles in Japan,
including cars for sales activities, with lowpollution vehicles by fiscal 2010. As a result,
the number of low-pollution vehicles used by
the Sharp Group in Japan accounted for
74.3% of the group’s approximately 3,900
fleet vehicles in fiscal 2005.
Chairperson: Environmental Protection Group General Manager
Corporate
Procurement Group
● Domestic railway cargo transport
(container transport): 1,250 containers/month
● Reduce 5,200 t-CO2 of CO2 emissions in Japan
Improvements in Transport
Efficiency, Introducing
Low-Pollution Vehicles
Creating a System to Promote Energy Savings in Distribution
In order to strengthen energy-saving measures for distribution in Japan, Sharp established a “Committee to Deal with EnergySaving Law as a Shipper” in fiscal 2005. The
committee enables Sharp’s material, distribution, CS promotion and environmental divisions to assess CO2 emissions in each field
— procurement, production, sales, parts*
and waste disposal. Its aim is to implement
efficient energy-saving measures throughout
Objectives for Fiscal 2008
● Domestic railway cargo transport
(container transport): 1,050 containers/month
● Reduce 4,400 t-CO2 of CO2 emissions in Japan
Domestic railway cargo transport
(container transport): 963 containers/month
Reduced approx. 4,133 t-CO2 of CO2 emissions
in Japan
Sharp is promoting 3R (Recycle, Reuse and
Reduce) of packaging, cushioning and
transportation materials to reduce waste at
distribution sites.
Sharp’s Nishinihon Logistics Center and Kameyama Logistics Center are promoting the
use of reusable eco-bands as packaging
materials for preventing the collapse of cargo while stored in a warehouse. The Nishinihon Logistics Center won an award of excellence in the Japan Distribution Improvement
Examples Contest in 2005 for its recycling
activities concerning stretch film* and plastic.
* 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 cargo.
Sharp and the Environment
社Pursuit
会とシャープ
In
of Becoming an Environmentally Advanced Corporate Group
Developing Super Green Recycling
Sharp is engaged in the recycling of various used products in line with 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.
Achievements
Objectives for Fiscal 2006
● Strengthen domestic recycling of
home appliances
Began operation from countries that
have established recycling systems
● Begin smooth operation of recycling
systems in Europe
Recycling Four Kinds of Home Appliances
(Air Conditioners, TVs, Refrigerators and Washing Machines)
(thousands of units)
1,400
1,245
1,200
In fiscal 2005, four types of home appliances
designated under the Japanese Home Appliances Recycling Law, about 1.3 million units
in total (up 4% over the previous year), were
recovered and recycled. The processing rates
in the recycling plants satisfied the legal standard for all four kinds of appliances.
1,000
800
600
1,112
314
352
266
275
371
376
127
161
2001
2002
904
234
294
388
298
223
399
408
156
186
205
2003
2004
400
In future, Sharp will improve its 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.
1,299
1,159
366
320
200
0
In compliance with the Japanese Law for
Promotion of Effective Utilization of
Resources, Sharp is recycling used PCs
from both corporate users and general
households.
For home-use PCs, the PC industry is
working with Japan Post in a recovery
system using special parcel packages called
“Yu Packs” available at more than 20,000
post offices around Japan.
In fiscal 2005, recovered and recycled PCs
amounted to approximately 3,600 businessuse and home-use desktop and notebook
PCs and about 1,900 monitors, an increase
of 57% and 19%, respectively, over the
previous year.
2005
(fiscal year)
* Five companies: Fujitsu General Ltd., Hitachi Appliances, Inc., Mitsubishi Electric Corporation, Sanyo Electric Co., Ltd., Sony Corporation
(in alphabetical order)
Air conditioners
TVs
Reusing and Recycling
Copiers
Refrigerators
Washing machines
■ Sharp Corporation’s recycling rates for the four home appliances (fiscal 2005)
(%)
Air conditioners
TVs
Refrigerators
Washing machines
Recycling rate
85
75
68
75
Legal standard
60
55
50
50
Overseas Topics
Europe
United States
In EU member states, following the
enactment of the Waste Electrical and
Electronic Equipment (WEEE) Directive in
February 2003, industry associations and
other organizations are constructing
collective recycling systems, with Sharp’s
local subsidiaries participating in the
construction.
Sharp’s US sales
subsidiary SEC has
been participating in
the “Plug-In To
SEC cooperating in
“Plug-In To eCycling”
eCycling” program
promoted by the
Environmental Protection Agency in various
regions of the US since 2002. In 2005, SEC
supported 155 recycling events, contributing
to recycling of used home appliances across
America. In recognition of these continuing
activities, SEC was honored by the
Environmental Protection Agency for the fifth
consecutive year.
In Germany, Sharp’s sales subsidiary
SEEG, in cooperation with Loewe AG
and Philips Consumer Electronics, has
established the “ProReturn” recycling
system to promote rationalization of
recovery and recycling, as well as cost
reduction.
● Global development of recycling
technologies
Recycling PCs
■ Sharp Corporation’s recycled units
for the four home appliances
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.
Objectives for Fiscal 2008
Sharp is promoting reuse and recycling of
used copiers and toner cartridges. A portion
of the collected copiers is remanufactured:
copiers are disassembled, 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 2005, approximately 26,700 copiers
(16% more than the previous fiscal year)
were recovered, and 476 units (down 42%
from the previous fiscal year) were
remanufactured and shipped.
Approximately 505,000 toner cartridges
(18% more than the previous fiscal year)
were recovered, and about 249,000
remanufactured toner cartridges (1% more
than the previous fiscal year) were shipped.
Models and parts not targeted for reuse are
sorted by material so that they can be
recycled.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Data on recycling of used products
Environmental and Social Report 2006 ■
40
Environmentally Conscious Logistics and Packaging / Developing Super Green Recycling
Objectives for Fiscal 2005
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Promoting Environmental Communication
To enhance environmental communication within its wide range of stakeholders, Sharp discloses environmental information
through various media and exhibitions, including Environmental and Social Reports, Web sites and newspaper ads. Each site
also conducts community-based activities by holding original events, factory tours and distributing site reports.
Environmental and Social
Report, Web Site on Social
and Environmental Activities
Advertising and Commercials
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. Starting with the 2005
edition, the report expanded coverage of the
social aspects of Sharp’s business activities.
The title has therefore been changed to
“Environmental and Social Report.”
In order to get messages as well as information about its environmental goals to a wider
audience, Sharp advertises in print media
and on television. Since fiscal 2003 in Japan,
with the slogan “Let’s go Ecology Class with
Sharp,” the company has created TV commercials with the theme of environmentally
conscious lifestyles, as well as newspaper
ads that highlight its environmentally conscious one-of-a-kind products, technologies
and production plants.
The fiscal 2005 edition of the Environmental
and Social Report won an award for excellent
environmental reporting in the Environmental
Communication Awards*1, and an award for
excellence in the Green Reporting Awards*2.
The series of newspaper ads that Sharp
published for five consecutive days from
June 5, 2005 (Environment Day) won the
grand prize in the readers’ choice category
in the 22nd Yomiuri Advertising Awards
sponsored by the Yomiuri Shimbun.
Using articles from the Environmental and Social Report, Sharp’s Web site also presents
more specialized content, such as examples
of specific activities and detailed data on environmental impact.
Newspaper ad
*1 Sponsored by the Global Environmental Forum
and supported by the Ministry of the Environment
and Nihon Keizai Shimbun, Inc., these awards
recognize outstanding environmental reports.
*2 Sponsored by Toyo Keizai Inc. and the Green Reporting Forum, these awards recognize outstanding environmental reports.
Exhibitions
Through participation in domestic and overseas exhibitions, Sharp publicizes its environmental technologies as well as environmentally conscious products and devices,
along with information on its approach to
tackling environmental problems in production. In Japan, Sharp has participated in the
Eco Products exhibition every year since fiscal 2000.
In fiscal 2005, with the theme “Aiming for
zero global warming impact through solar
power and Ecology Class products,” Sharp
introduced its corporation vision and other
environmental targets, as well as its environmental technologies and environmentally
conscious products.
In fiscal 2005, Sharp also took part in major
overseas exhibitions, including the 2005 International Consumer Electronics Show
(CES) in the US, the IFA 2005 Berlin Show in
Germany and the Energy Equipment Exhibition in Thailand.
Eco Products 2005
Sharp Environmental
and Social Report 2005
(Japanese, English and
Chinese editions)
TV commercial
Web site for Sharp’s social and environmental activities
http://sharp-world.com/corporate/eco
IFA 2005 Berlin
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. And to help residents
better understand Sharp’s environmental
goals, all Sharp Corporation’s production
sites have issued and distributed site reports
since 2004.
As part of its risk communication plan, the
Fukuyama site held a dialogue forum with the
participation of 43 local residents, city officials and experts in July 2005. The Fukuyama site explained its environmental efforts as
well as the hazards of chemical substances,
and received various opinions from the participants.
Dialogue forum at the Fukuyama site
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Exchanges with local communities
41
■ Environmental and Social Report 2006
Sharp and Society
In Pursuit of Becoming a
Corporate Group Trusted by Society
For Customers
Enhancing Customer Satisfaction, Ensuring Quality and Safety
Reinforcing Information Security
For Shareholders and Investors
Appropriate Return of Profits and Information Disclosure
For Business Partners
Mutual Prosperity with Suppliers and Dealers
For Employees
Creating a Fair, Positive and Progressive Workplace
For Local Communities
Social Contribution Activities as a Corporate Citizen
Customer Assistance Center in Japan
Environmental and Social Report 2006 ■
42
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Customers
Enhancing Customer Satisfaction, Ensuring Quality and Safety
In pursuit of becoming a company trusted by society, Sharp makes products and provides services from the perspective of the
needs of the age and of customers. Sharp always listens to customer comments with sincerity, and utilizes such comments
when making new products and improving services.
Basic Stance and Vision
Concerning Customer
Satisfaction and Quality
Sharp’s basic stance concerning quality,
based on the slogan “Quality First in Heart
and Mind,” is to meet requests from society
and make products that satisfy customers.
With regard to guarantee of quality, Sharp
has made it clear to all its employees that
quality should be guaranteed to customers,
and is making efforts with the participation of
all employees to continually improve quality.
To enhance the safety of products, Sharp
not only complies with safety standards and
laws and regulations of each country, but
has also established and put into practice its
own safety technology standards.
Customer Assistance to
Deliver Maximum Satisfaction
The Customer Assistance Center in Japan,
which handles a variety of inquiries
concerning products, including which
models to buy and how to use them,
considers its biggest mission is to deliver
maximum satisfaction to customers by
thinking from their points of view and
anticipating their needs.
In fiscal 2005, Sharp carried out measures
to enhance customer satisfaction, which
included offering a toll-free phone number, in
Japan. In response to diversification of
customer lifestyles and the widespread use
of the Internet, Sharp has also enhanced the
contents of its Japanese Web support by
posting FAQs and providing download
access to instruction manuals.
Customer Assistance Center
Upskilling Training for Better
Response
To provide better service at the Customer
Assistance Center, Sharp offers upskilling
training that targets all representatives and
provides coached training as needed to
improve their skills.
Displayed at each site as a slogan for
company-wide quality enlightenment
Providing Quicker, More
Reliable Service
■ Mission of the Customer Assistance Center
CS (Customer Satisfaction)
Under the slogan “Aiming for No. 1 in
Customer Satisfaction,” Sharp has been
engaged in customer satisfaction innovation
activities to provide quicker and more
reliable service. These include establishing
AQUOS Plaza in Japan,* as an after-sales
service department specializing in AQUOS
LCD TVs, and making after-repair calls to
ask customers if there are any problems
regarding repaired products and service
engineers.
* Opened in 12 places in Japan (Sapporo, Sendai,
Saitama, Makuhari, Tokyo, Yokohama, Nagoya,
Kyoto, Osaka, Hanshin, Hiroshima and Fukuoka)
Aiming to offer immediate
connection and contact
whenever the need arises
Impressed!
Satisfied!
Customers
Improving reception
rate/response rate
Providing quick
service and
support for peace
of mind
Demand
Expectation
Improving
response quality
Customer
Assistance
Center
Service control tower function
Service company
Parts center
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Quality guarantee system ■ ISO 9001-certified sites (companies)
43
■ Environmental and Social Report 2006
Aiming to offer added
value through accurate
response and attention
Offering better
products that
reflect customer
comments
Information on
new products
Divisions
(development
and manufacturing)
Making Products That Can be Easily Used by Anyone
Sharp conducts tests to learn how users
operate the products and door-to-door
surveys at the stage of product
development. In door-to-door surveys, Sharp
gathers various opinions from customers
who are actually using the products and
utilizes such opinions for future product
development.
The accumulation of such efforts has
resulted in universal design products that can
be easily used by anyone, regardless of
ability or experience. In fiscal 2005, the
Association for Electric Home Appliances in
Japan selected 88 models in 17 categories
of Sharp’s consumer products as “Universal
Design-Conscious Home Appliances.”
EXAMPLE
■ Improvement of
drum-type washer/dryer
Sharp conducted surveys of wheelchair
users on the user-friendliness of a
copier/printer’s paper tray
Developing Usability Testing
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.” By usability
testing, the person in charge of product
planning and development can observe how
people actually use the product and verify
ease of use. This “usability testing” has 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.
Top of door
68cm
Bottom of
drum
22cm
For Customers
With the diversification of lifestyles and the
advance of an aging society, still more
consideration and innovation are sought to
enable customers to comfortably use
products.
Sharp engineers operated
washing machines wearing
equipment for simulating the
physical conditions of the elderly
as a method for better
understanding their physical and
mental status
Immediate and Accurate
Disclosure of Information
Sharp has clearly set in-house standards and
systems to handle cases when injury is inflicted on customers, or a potential harm to life,
body or property is discovered in relation to
the use of Sharp products. In the event of
such damage or potential harm, Sharp will
disclose related information immediately
through newspapers and its Web site, and
establish an inquiry desk to keep customers
informed and minimize any inconvenience.
During fiscal 2005, when defects were found
in single-crystal photovoltaic modules in May
and LED display systems in August, Sharp
immediately disclosed information on free-ofcharge inspection and repair services.
Sharp’s conventional model ES-DG703
Before
Customers said that because the position
of the drum is too low, it is difficult to take
out laundry unless they bend over.
Top of door
89cm
Bottom of
drum
38cm
Sharp’s new model ES-HG90
After
A proprietary high-drum mechanism (the
top of the door is 89 cm and the bottom is
38 cm) makes it easier for a user to take
out laundry at the bottom of the drum.
Overseas Topics
Aiming to Become No. 1 in Customer Satisfaction
For the third time in the past four years,
US sales company SEC became No. 1 in
the industry for customer satisfaction, according to the results of the Consumer
Electronics Association customer satisfaction study in 2005. The study was conducted on 16 consumer electronics makers.
* A division of the Frontier market research
agency in Indonesia for enhancing customer
satisfaction and brand loyalty.
In Indonesia, the call center of sales company SYA (currently SEID) won the 2005
Call Center Award (household electronics
category) from the Center for Customer
Satisfaction and Loyalty.*
Sharp makes efforts to improve its service around the world by holding “Global
Service Managers Conferences” annually
that is attended by people responsible
for service and quality at overseas sales
companies and manufacturing bases.
SEC’s Customer Assistance Center team,
No. 1 in the industry for customer satisfaction
Environmental and Social Report 2006 ■
44
Sharp and Society
社会から信頼される企業グループをめざして
In Pursuit of Becoming a Corporate
Group Trusted by Society
For Customers
Reinforcing Information Security
Keeping pace with the development of IT infrastructure, companies must now take more responsibility than ever for ensuring
the privacy of information. Sharp is aiming to become a company that can be highly trusted with information security and
personal information protection, by strengthening information management systems, improving the safety of its information
infrastructure, and providing employees with comprehensive training on information management and security.
Raising Security Levels and
Reinforcing Management
Systems
Enhancing the System to Protect Important Information
Sharp is strengthening information security
to protect vital information of customers and
other stakeholders as well as confidential
information of Sharp.
measures at semi-annual meetings of the
Information Security Committee.
Sharp also established the Personal
Information Protection Promotion
Department in November 2004, and has
established a management system on
information security and personal
information protection to promote safe
management of information.
In April 2004, Sharp headquarters
established the Information Security
Promotion Department, and is checking the
information security activities of all domestic
companies and developing security
■ System for information security and protection of personal information in Japan
Information Security
Committee
Information Security Management System
Chief information
security officer
Chairman
Business group
supervisor
Business group
supervisor
Management
supervisor
Management
supervisor
Management
supervisor
Rule deliberation
Infrastructure building
Training, education
Department
general manager
Department
general manager
Chief privacy
officer
Personal Information
Protection Promotion
Department
Business group
supervisor
Business group
supervisor
Department
general manager
Sharp provides regular online e-learning
courses in information security and personal
information protection for all employees
annually in Japan. Sharp also provides
technology seminars for information security
managers.
e-learning course on
information security and
personal information protection
■ Environmental and Social Report 2006
Reinforcing Security Systems
at Overseas Bases
Sharp’s overseas bases continued to take
thorough information protection measures
and carried out investigations on how to
strengthen future information management
systems. With that, Sharp has established a
promotional organization at each overseas
base, as it has done in Japan for boosting
the level of information security.
In fiscal 2006, Sharp will work on
establishing regulations common to all
overseas bases and standards in
accordance with local conditions.
Department
general manager
Education and Training for Employees through e-Learning
45
And in order to effectively monitor the
implementation status on confidentiality and
information security measures, Sharp has
introduced a self-check and assessment
system to be conducted by every business
group in Japan, and is working to raise
information security levels and reinforce
management systems.
Personal Information Protection System
Corporate Senior
Executive Vice President,
Chief General
Administration Officer
Information Security
Promotion Department
In response to the Personal Information
Protection Act in Japan enforced in April
2005, Sharp formulated audit rules for the
handling of personal information, and has
systematically conducted audits in Japan.
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Shareholders and Investors
Appropriate Return of Profits and Information Disclosure
One of the most important management principles for Sharp is to return a portion of profits to shareholders. That’s why Sharp strives to
offer shareholders consistent dividends and to implement such other measures as increasing these dividends according to the
company’s business results and financial situation. Sharp also considers it important to enhance transparency by providing prompt,
accurate and wide-ranging information. Sharp fully revised its investor relations Web site in fiscal 2005 to make it easier to understand.
Basic Policies Concerning
Profit Sharing
Active Investor Relations
To raise the operational efficiency of shareholder equity and further raise shareholder value,
Sharp employs the treasury stock system*,
where we consider buying back outstanding
shares when the situation allows and holding
the shares as treasury stock. 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 actively communicates with investors
through investor relations (IR) activities.
In fiscal 2005, Sharp held meetings to
announce quarterly financial results,
business strategy meetings and factory tours
for institutional investors and analysts. Sharp
also visited major institutional investors both
in Japan and overseas to actively exchange
opinions.
To promote direct communication with
individual investors, Sharp participated in
various seminars for individuals to explain its
business results and strategy. Sharp also
fully revised its investor relations Web site to
enhance the contents and make it easier to
understand.
The valuable feedback gathered from
investors and analysts at these meetings is
regularly relayed to Sharp management for
future improvements.
As part of information disclosure to
stakeholders, Sharp cooperates in good
faith with research organizations doing
surveys on socially responsible investment
(SRI).*
In 2005, Sharp was selected as one of the
stocks among the KLD Global Climate 100
Index comprising the world’s top 100
companies engaging in business activities
that contribute to reducing global warming
factors (established in the US in July 2005).
Sharp was also added to the following SRI
indices:
• FTSE4 Good Global Index (UK);
September 2005
• Ethibel Sustainability Index (Belgium)
• Morningstar Socially Responsible
Investment Index (Japan); September
2005
* SRI: Socially Responsible Investment. Active
investment in companies that fulfill social
responsibilities not only in financial results, but
also from environmental and social aspects.
* 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)
2001
2002
2003
2004
2005
10.10
29.37
55.37
70.04
80.85
Investor relations Web site
(top page)
(yen)
■ Dividend per share
(fiscal year)
2001
2002
2003
2004
2005
14
15
18
20
22
(yen)
Staying Financially Healthy
and Raising Corporate Value
Sharp 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. 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).
General Shareholders’
Meeting
Sharp makes efforts to create an environment that enables shareholders to exercise
voting rights at the ordinary general meeting
of shareholders, such as holding the meetings earlier than the date most Japanese
companies hold theirs, adopting the exercise
of voting rights over the Internet, and posting
an English notice for convening the meeting
on its Web site.
Sharp also makes the shareholders’ meeting
public by posting images and other information on its Web site the day after the meeting
for a certain period in order to provide information to shareholders who could not attend
the meeting.
Share Distribution
The number of Sharp’s shareholders was
103,894 as of March 31, 2006. The
distribution of stocks owned by shareholders
is as follows.
■ Share distribution
Japanese
individuals
19%
Japanese
corporations
and others 8%
Japanese
financial
institutions
Non-Japanese
46%
27%
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Investor relations
Environmental and Social Report 2006 ■
46
For Customers / For Shareholders and Investors
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 shareholders, such as increasing the amount of periodic dividends. Annual dividends in fiscal 2005 were 22 yen per
share, which marked an increase for the sixth
consecutive period.
Constituent of SRI Indices
(Equity Indices) in Japan and
Overseas
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,
materials and equipment which meet its requirements, 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 business partners.
Equal Opportunity and Fair
Evaluation for All Domestic
and Overseas Suppliers
Sharp procures parts, materials and
equipment from numerous domestic and
overseas suppliers based on the concept of
providing equal opportunities to all suppliers,
and by procuring superb materials that
comply with Sharp conditions and requests
through fair evaluations.
Sharp has stipulated “Basic Purchasing
Principles” that clearly describe the
fundamentals of impartial and fair
purchasing, and that promote the
development of mutual collaboration and
trust. Thus, Sharp pursues a prosperous
coexistence with its business partners.
Basic Purchasing Principles
(revised June 2005)
Making CSR a Common Goal across the Entire Supply Chain
A company must fulfill social responsibility
not only within its own group, but also within
its entire supply chain and network of
suppliers, when doing business domestically
and overseas.
Consequently, in May 2004, Sharp revised
its Basic Purchasing Principles to include
items such as conservation of the
environment, compliance with laws and
regulations, no disclosing of confidential
information and the CSR approach.
2. Guidelines for procurement
activities
1) Open and impartial procurement
activities and purchases at optimal
cost
2) Establishing mutual relationships
3) Conservation of the environment
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
■ Close communication for mutual understanding (Japan)
To build strong relationships with its suppliers, Sharp communicates proactively to pursue a balance of mutual
understanding.
Sharp
Entire
company
Business and Purchasing
Policies Explanation Meeting
(once a year)
Supplier meeting (semi-annually)
Business
groups
Purchasing
staff
• Explanation of industrial and
product trends
• Explanation of business plans
• Open exchange of opinions
■ Environmental and Social Report 2006
Business
partners
Close
communication
and mutual
understanding
Buyers from each parts
category exchange opinions
and information with business
partners on a daily basis.
Overseas Topics
Actively Taking Part in Countersample Exhibitions and
Holding Technology Seminars
In order to expand global procurement,
Sharp actively participates in countersample exhibitions* in Japan and overseas and
holds technology seminars where suppliers
can propose new materials and parts and
introduce new technologies.
The countersample exhibition held in
Shanghai in September 2005 attracted
about 4,000 visitors, and the Sharp booth
received numerous inquiries.
* Countersample exhibition: Exhibition where manufacturers display parts and materials they want
to procure, in an effort to seek new suppliers.
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Sharp Basic Purchasing Principles (full text)
47
In March 2006, Sharp revised the Green
Procurement Guidelines to strengthen efforts
for environmental conservation across the
entire supply chain.
In June 2005, Sharp further revised its Basic
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 such social
responsibility as the conservation of
the environment through
procurement activities.
4) Sharp pursues optimal quality and
cost to the fullest.
Purchasing Principles to add items that
suppliers are requested to observe, focusing
on matters concerning procurement
activities from a CSR perspective. Sharp has
posted the contents of the revision on its
Web site, and made the requests to its
domestic and overseas suppliers in writing.
At the countersample exhibition held in Shanghai
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
Approaching CSR together with Suppliers
To promote CSR efforts throughout the
supply chain, Sharp has assigned supply
chain CSR promoters at procurement
departments and other related departments
of each Sharp site in Japan.
Electronics and Information Technology
Industries Association) and is studying the
formulation of a CSR guidebook together
with other member companies.
■ Applying CSR to suppliers
Business partners
In fiscal 2005, targeting representatives of
subcontractor companies engaging in
business at Sharp sites in Japan (218
persons from 146 companies), Sharp held
explanation sessions on labor management,
safety and health management,
environmental conservation and contracts. In
fiscal 2006, Sharp will hold similar
explanation sessions for representatives of
the subcontractor companies, who are
responsible for operations at each Sharp site
in Japan.
To compile standard industry requests to
suppliers and enable suppliers to check
CSR efforts by themselves, Sharp
participates in the “Supply Chain CSR
Working Group” initiated by the JEITA (Japan
Design
Design
subcontractors
Procurement
Production
Sales
Service
Suppliers
Production
subcontractors
Dealers,
sales agents
Support
subcontractors
Business
subcontractors
Transport
companies
Service
subcontractors
Materials, parts
and equipment
manufacturers
Basic Purchasing Principles
Green Procurement Guidelines
Procurement
CSR explanation sessions/seminars
Compliance
Environmental actions
Sharp
Offering Information on Environmental Actions
Sharp hosted “Environmental Information
Network” group seminars in Japan to
exchange environment-related information
with business partners in May 2005, and
again in February 2006. With the
participation of 97 companies (108 people)
from all over Japan, Sharp provided
information on its activities dealing with the
revision of ISO 14001 standards in 2004, the
trends concerning laws and regulations, and
precautions in waste disposal.
At these seminars, companies that have
already acquired ISO 14001 certification
exchanged information about their
environmental activities, while Sharp
introduced a method to establish minimum
environment management systems to
companies that have not yet acquired ISO
14001.
Sharp will strengthen environmental efforts
by continuing to place importance on
communication with business partners in the
future.
Fulfilling CSR together with
Dealers
Sharp’s sales and marketing departments in
Japan, which directly engage with dealers,
host seminars to provide information and
training for dealers, to enable them to correctly understand the environmental performance
of Sharp products. At these seminars, Sharp
introduces its CSR concept and efforts, with
the aim of creating partnerships to jointly pursue CSR in sales activities.
Environmental Information Network seminar
Environmental and Social Report 2006 ■
48
For Business Partners
As part of CSR efforts spanning the entire
supply chain, Sharp began inviting major
subcontractor companies in Japan to CSR
explanation sessions and seminars in fiscal
2004. Through these efforts, Sharp helped
to implement a CSR promotion system at
each company and devised a checklist to let
them evaluate their current status.
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Employees
Creating a Fair, Positive and Progressive 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. Through creating a work environment where all employees can work safely
and maintain good mental and physical health, Sharp is encouraging the growth of the company and its employees.
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
Personnel, Education and
Training Systems that Value
Employee Initiative and Diversity
Sharp Corporation systematically conducts
human resource development, and has
introduced a variety of personnel, education
and training systems that value the initiative
and diversity of each employee and help
them develop their individuality, motivation
and creativity.
Next-generation human resource
development system
• Leadership program
• Challenge course
• MOT (management of technology) program
• Master system
Individual ability and motivation
demonstration system
Basic Human Rights and
Personal Dignity
Sharp stipulates in both the Sharp Group
Charter of Corporate Behavior and the Sharp
Code of Conduct the corporate policy and
guiding principles for executives and employees regarding protecting basic human rights
and personal dignity, including prohibition of
both child and forced labor. To promote
these values, human rights seminars are held
regularly at each Sharp domestic site.
• Personnel declaration/career
development system
• Career development rotation
• Recruitment entry system
• SHINE program (for sending young
employees to overseas bases)
Education, training and selfdevelopment support system
• Seminars classified by function and
specialized field
• Correspondence course, “Essential” course
• Step-up campaign (qualification
acquisition encouragement plan)
Employing the Physically and
Mentally Challenged
Sharp Corporation has established the
“Committee for Promoting Employment of
the Challenged” to promote employment and
support self-reliance of those who are physically or mentally challenged, and remains
committed to creating a worker-friendly environment and promoting employment of the
physically and mentally challenged.
Sharp’s efforts in this field have a long history. In 1950, Sharp incorporated a separate
factory and renamed it Hayakawa Special
Metals Factory to help rehabilitate blinded
war veterans. Today, its successor, Sharp Tokusen Industry Co., is making efforts as a
special subsidiary to increase the employment level of the physically and mentally
challenged.
In fiscal 2005, Sharp Corporation’s physically
and mentally challenged employment rate
reached 2.00%.
■ Employment rate for the physically and
mentally challenged in Japan
(%)
2.5
2.0
Sharp encourages its business partners
through the Basic Purchasing Principles to
uphold the same standards in respecting human rights.
1.91
2.00
1.85
1.84
1.83
1.80
1.80
1.80
1.80
1.80
1.49
1.49
1.48
1.46
1.49
2001
2002
2003
2004
1.5
Good Labor-Management
Relationship through Dialogue
1.0
2005
(fiscal year)
Sharp values good, trustful relationship
through 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 Labor-Management
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.
Sharp Corporation
Rate mandated by law
Average of all private-sector firms
Seminars classified by function
Overseas Topics
Localizing Management
Being a corporation that does business globally, Sharp fosters local employees and promotes them to executive positions. Particularly, Sharp has actively promoted and recruited
local employees to the top executives of overseas sales companies. At present, local employees serve as the top management of
most sales companies in Europe, including
serving as the regional chief executive.
held at a business school in Switzerland, in
addition to group seminars held at Sharp’s
training institute in Japan. The curriculums
are designed to help participants acquire the
skills and leadership required for executives,
and also include Sharp’s original business policy, thoughts and approach.
Since fiscal 2003, Sharp has offered training
programs to foster executives at its overseas
bases. Under these programs, seminars are
Training of executives from overseas bases
Central Labor-Management Council
49
■ Environmental and Social Report 2006
Labor and Management
Discuss and Promote Safety
and Health
Each site holds monthly labor-management
safety and health committee meetings to set
specific goals and carry out various
activities. At the same time, each site
regularly holds safety and health
communication meetings to improve the
safety and health of employees of business
partners stationed inside Sharp sites.
Sharp Corporation also holds Central Safety
and Health Committee meetings that bring
Sharp and the labor union together every
two months, at which time they confirm the
status of company-wide safety and health
efforts and share valuable information.
The company carries out safety and health
tests at each plant, using teams formed from
Sharp Corporation’s persons in charge of
safety and health, the labor union and thirdparty companies. Dangerous places and
operations are singled out, and necessary
safety measures are taken to prevent
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.
rate per one thousand employees, closure of
more than 4 days) is far below the average
value for all industries combined, as well as
the manufacturing industry in Japan. 2005
also saw a decrease in the accident rate.
■ Industrial accident rates in Japan (annual
accident rates per one thousand employees)
(persons)
4.0
3.5
3.0
3.5
3.3
3.5
3.4
2.6
2.7
2.6
2.6
0.26
0.26
0.17
2001
2002
2003
2.5
2.0
1.5
1.0
0.5
At Sharp
Corporation, the
occurrence of
industrial
accidents (the
annual accident
Mental Health Care
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.
0.0
0.47
2004
0.30
2005
(year)
Manufacturing industry average
All-industry average
Sharp Corporation
Inspection of stationary
equipment
Note: Averages for all industries and the manufacturing
industry are based on a survey by the Ministry of
Health, Labour and Welfare.
Sharp Corporation’s comprehensive stress
care system aims to prevent and deal with
mental illnesses at an early stage. The company has introduced various systems in consideration for employees undergoing work
environment changes such as assignment,
promotion, transfer not accompanied by
family, job transfer, and returning from medical leave. To promote correct awareness of
mentally related problems, the company also
conducts various training and awareness activities.
In the coming years, Sharp Corporation will
carry out periodical mental health checkups
for all employees, and promote early discovery of and treatment of mental illnesses
through enhancement of self-care as well as
early treatment by company health staff.
■ Scope of the Sharp Stress Care System
• Face-to-face counseling with specialist
doctors and company counselors at main
sites
• Counseling through an outside medical
service institute by phone or in-person
• Mental health checkups and counseling for
all employees undergoing work
environment changes such as personnel
relocation accompanied with transfer,
transfer not accompanied by family, and
promotions
• Distribution of handbooks or manuals on
mental health care
• Educational seminars for managers by
experts, mental health seminars,
awareness activities through provision of
information using the intranet
• Support program for employees returning
from medical leave that combines the
efforts of the company physician and the
employees’ respective departments
Health Promotion for Employees and Their Families
Diseases caused by lifestyles and habits
have become major social and economic
problems. That’s why Sharp created Healthy
Sharp 21, a comprehensive healthpromotion program in Japan to prevent
these diseases so that employees and their
families can enjoy a healthier, happier life.
Healthy Sharp 21 includes voluntary fitness
programs that encourage individuals to
change their lifestyles and daily habits to
prevent these diseases.
Sharp also gives employees periodic
physical checkups to maintain their health,
with 99.8% of all domestic employees
undergoing these checkups in fiscal 2005,
and follows up on employees screened for
further medical examinations through
reexamination and health maintenance
guidance.
In the future, by widening the target to those
who are in risk of suffering from these
diseases, Sharp will create programs in
Japan to encourage change of lifestyles and
habits such as poor diet, lack of exercise
and smoking, and heighten awareness of
health self-management.
■ Physical checkup participation rates
(in Japan)
(%)
100
99
99.6
99.1
99.8
99.8
98.8
98
97
2001
2002
2003
2004
2005
(fiscal year)
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Personnel systems and education and training systems ■ Personnel-related data ■ Accident risk management
Environmental and Social Report 2006 ■
50
For Employees
Sharp Corporation has set a safety and
health “Basic Philosophy” and “Safety and
Health Principles”, and formulates specific
objectives and promotion plans annually,
aiming for zero industrial accidents. These
policies are communicated to all domestic
sites as a company-wide campaign through
the “Central Safety and Health Convention”
and safety and health conventions held at
individual sites.
Basic Philosophy
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Local Communities
Social Contribution Activities as a Corporate Citizen
With the Sharp Green Club (SGC) acting as the core, Sharp conducts community-based activities that contribute to society in
Japan and overseas. And since fiscal 2004, Sharp has been creating “Sharp Forests” around the country as its flagship activity.
Sharp Green Club (SGC)
Carries Out Community-Based
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).
Each site and sales/service base assigns a
“promoter” as the leader to play a central
role in conducting various community-based
activities.
In fiscal 2005, Sharp carried out
environmental volunteer activities all over
Japan, such as the Wakakusayama Cleanup
Campaign in Nara Prefecture and the Nagai
Park Cleanup Campaign in Osaka
Prefecture, jointly conducted by the Osaka
and Nara sites. A total of 27,108 employees,
an increase of about 3,000 people over the
previous fiscal year, participated in SGC
activities.
Creating “Sharp Forests” in Japan
Based on the concept of “Nurturing an
environmentally friendly mindset by
understanding the link between forests,
living things and humans, and deepening
bonds with nature,” the SGC has plans to
create “Sharp Forests” in all prefectures
where Sharp’s business sites are located.
This initiative aims to contribute to the
regeneration of forests by planting new
trees, as well as foster employees’
environmental awareness through contact
with the natural environment.
Following the tree planting for a Sharp Forest
in Hachihonmatsu Yoshikawa in Hiroshima
Prefecture in fiscal 2004, the creation of a
Sharp Forest in Konoyama in Kishiwada City,
Osaka Prefecture started in fiscal 2005, and
a total of 1,800 seedlings were planted in
April 2006. These activities were recognized
as the first “Adopt-a-Forest”*1 case initiated
by Osaka Prefecture. In May 2006, Sharp
announced its participation in the “Mie
Prefecture Company Forest Project,”*2
becoming the first company to do so.
By fiscal 2007, Sharp plans to create Sharp
Forests at 10 locations around Japan.
*1 A system to promote protection and
regeneration of the natural environment, with
Osaka Prefecture acting as a matchmaker for
companies that wish to “adopt” a forest.
*2 A system in which Mie Prefecture acts as a
matchmaker between forest owners and
corporations/nonprofit organizations (NPOs) that
wish to carry out social contribution activities
such as preservation of forests. It aims for the
participation of prefectural residents in
forestation activities.
Individual overseas sites have also carried
out a variety of activities such as treeplanting, cleanup activities in local
communities, and environmental education
classes at schools.
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
17th Asian Pacific Awards was held in December 2005. Through these awards, Sharp
contributes to the stability and development
of the Asia-Pacific region.
Adopt-a-Forest signing ceremony with Osaka
Prefecture and Kishiwada City
Approximately 130 Students
Accepted for Internship
Sharp takes part in an internship program in
Japan to support college students’ career development by giving them on-the-job training.
In fiscal 2005, about 80 liberal arts students
took part in the business internship programs, while about 50 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.
17th Asian Pacific Awards ceremony
Information on Web site
http://sharp-world.com/corporate/eco/report2006 ■ Examples of social contribution activities
51
■ Environmental and Social Report 2006
Konoyama Sharp Forest tree-planting event
Leave Systems to Support
Social Contribution Activities
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 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.
Examples of Local Social Contribution Activities in Japan and Overseas
■ Support activities for local events
National Goldfish
Scooping
Championship held in
Yamatokoriyama, Nara
Prefecture
■ Welcoming corporate facility tours
Sharp’s Tokyo Branch hosts science events targeting
children during spring and summer holidays. In fiscal
2005, Sharp held programs such as science experiment
classes and solar cell seminars, with more than 400
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.
■ Local social contribution activities
at each sales and service site
■ Participating in Earth Day events
(SECL, Canada)
Sharp’s sales and service sites across Japan have actively
participated in local social contribution activities in their
respective neighborhoods, such as cleanups of parks and
rivers.
In fiscal 2005, a total of about 13,800 people, including
Sharp employees, their families and business partners,
participated in such activities at 86 sites around the
country and deepened exchanges with local communities.
SECL supports the “Ecomentors” education program
initiated by the environmental organization Earth Day
Canada.
On Earth Day in April 2005, SECL along with its
employees and their families participated in environmental
social contribution activities by planting trees under the
Green Team Challenge program sponsored by Earth Day
Canada, and by participating in local cleanup events.
Employees from Sharp Tokyo Chuo Building participate in
a Taito Ward program to help clean the streets of Tokyo
Employees and families participate in tree planting
■ Holding the Wakakusayama
Cleanup Campaign annually
To help conserve the environment of Wakakusayama in
Nara Prefecture, the Osaka and Nara sites have jointly
conducted the Wakakusayama Cleanup Campaign since
fiscal 2003.
In fiscal 2005, Sharp expanded its conventional cleanup
activities into planting licorice, an indigenous vegetation of
Wakakusayama. About 1,200 people, including Sharp
employees and their families, planted licorice roots.
■ Supporting Japanese chess
(shogi) championship for children
in Shanghai (NSEC, SOCC,
Shanghai office, China)
Since 2000, Sharp has sponsored the Shanghai Children’s
Japanese Chess Championship. Some 120,000 children
reportedly play Japanese chess in Shanghai and about
2,000 children from approximately 170 elementary
schools and junior and senior high schools in Shanghai
participated in the championship in 2005. In this way,
Sharp supports exchanges between China and Japan.
Science experiment class held at the Tokyo Branch
Wakakusayama Cleanup Campaign
Awards ceremony for high-ranking winners
■ Personnel cooperation based on
Sharp’s businesses
■ Joining wildlife protection group
(SUKM, UK)
■ Hosting environmental classes at
local schools (SSI, Indonesia)
Since 2003, Sharp has sent employees from its Mie Plant
to local senior high schools as lecturers for special
science classes. In fiscal 2005, the class theme focused
on the theory of LCDs and environmental conservation.
Employees of the Katsuragi Plant in Nara Prefecture
delivered lectures at a university in Osaka Prefecture in
June and November on the characteristics of solar power
systems and environmental contribution.
In December 2005, SUKM became a corporate member
of the NWWT* wildlife protection group in North Wales.
Future NWWT support activities include greening of the
company site with wild plants and employees and their
families’ participation in volunteer activities at NWWTmanaged nature reserves.
SSI hosted environmental classes for local elementary
schools in September 2005 and March 2006. SSI
employees delivered lectures, while events such as
coloring, poem reading and illustration contests were held
to raise environmental consciousness.
For hosting the classes, SSI donated garbage cans, fruit
trees for planting and cleaning tools to the schools.
Special science class held at Mie prefectural Ouka Senior
High School
SUKM receives the corporate membership certificate from
the NWWT
* NWWT: North Wales Wildlife Trust
SSI’s environmental class at a local elementary school
Environmental and Social Report 2006 ■
52
For Local Communities
Sharp cosponsors various local events to deepen
exchanges with local communities. Events Sharp has
cosponsored include the Abeno Human Documentary Film
Festival (cosponsored by Sharp’s head office), the National
Goldfish Scooping Championship (cosponsored by the
Nara Plant), and the Yaita Takahara Marathon
(cosponsored by the Tochigi Plant).
Third-Party Review
53
■ Environmental and Social Report 2006
Information 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/report2006
(The contents of the Web site are subject to update, revision and deletion without prior notice.)
Environmental and Social Report Contents
Information on the Web Site
See page(s) in the report
Sites (companies) covered by the environmental performance data
Compiling This Report
1
GRI content index
Calculation standards for environmental performance indices
Concept of CSR (Corporate Social Responsibility)
–
A Message to People and the Earth
–
—
—
The Sharp Group Charter of Corporate Behavior (full text)
The Sharp Code of Conduct (full text)
Management System
Sharp Group's efforts to firmly establish CSR
5, 6
CSR efforts in sales and marketing activities in Japan
Respect for intellectual property rights
2005 Highlights
Special
Feature
Outline of the Sharp Group
Topics
7, 8
Financial results
Sharp’s electronic calculators recognized as an IEEE Milestone
Sharp’s Innovation in Technology and Manufacturing
Opens the Door to a New Era
9-14
Kameyama Plant
Photovoltaic power systems
1 SMF in France Achieves Super Green Factory Status
Green Factories
15, 16
2 Plant-Based Paint Put to Practical Use
Environmental technology development examples
17, 18
Various systems for supporting the balance between work and family
3 Affirmative Action for Women Spreads
4 SEMEX in Mexico Contributes Further to the Local Community
R-CATS Small-Group Activities
Examples of affirmative action activities
—
–
—
–
The Sharp Group Charter of Corporate Behavior (full text)
Policies, Objectives and Achievements Concerning the Environment
The Sharp Code of Conduct (full text)
ISO 14001-certified sites (companies)
Advancing Super Green Management
Examples of Sharp's environmental education
Developing Super Green Technologies
19, 20
Environmental technology development examples
25, 26
27, 28
31, 32
Green Products
Sharp and the Environment
Creating Super Green Products and Devices
Green Procurement assessment items
Building Super Green Factories
35
Green Factories
Examples of reductions in greenhouse gases
Reducing Greenhouse Gas Emissions
Data on greenhouse gases
36
Examples of reductions in the discharge of waste
Data on waste
Minimizing and Recycling Waste
37
Examples of effective water use
Data on water usage
Data on chemical substance management
Effectively Managing Chemical Substances, Conducting Risk Management
38
Data on the atmosphere and water quality
Environmentally Conscious Logistics and Packaging
Data on packaging materials used
39
Developing Super Green Recycling
Data on recycling of used products
40
Promoting Environmental Communication
–
Exchanges with local communities
41
–
For Customers
Sharp and Society
33, 34
Green Devices
Environmental data on Sharp Corporation production sites
—
Environmental history and awards
—
Quality guarantee system
Enhancing Customer Satisfaction,
Ensuring Quality and Safety
Reinforcing Information Security
—
–
For Shareholders and Investors
Appropriate Return of Profits and Information Disclosure
Investor relations
For Business Partners
Mutual Prosperity with Suppliers and Dealers
Sharp Basic Purchasing Principles (full text)
For Employees
Creating a Fair, Positive and
Progressive Workplace
43, 44
ISO 9001-certified sites (companies)
46
47, 48
Personnel systems and education and training systems
Personnel-related data
49, 50
Accident risk management
For Local Communities
Social Contribution Activities as a Corporate Citizen
Examples of social contribution activities
51, 52
Environmental and Social Report 2006 ■
54
22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
Phone: +81-6-6621-1221
http://www.sharp.co.jp
Printed with VOC (volatile organic
compound)-free ink
Published July 2006
Printed in Japan
Was this manual useful for you? yes no
Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Download PDF

advertisement