User manual | 2007 Environmental and Social Report

Environmental and Social Report
2007
About the Cover
Environmental and Social Report
2007
The roof of a winery in California is lined with 2,000
photovoltaic modules generating 411 kW. The electricity
generated is enough to power the entire winemaking
process, from pressing grapes and bottling the wine to
cooling the tanks. Grapes nourished with the bounty of
the sun are then made into wine with the energy of that
same sun. Photovoltaic modules harvest the vast power
of the sun to create clean energy.
Contents
Compiling This Report
Concept of CSR (Corporate Social Responsibility) ..................... 2
A Message to People and the Earth ............................................ 3
Management System
Corporate Governance ............................................................ 5
Compliance and Risk Management......................................... 6
Outline of the Sharp Group .......................................................... 7
■ Organization
Special Feature
Sharp’s Goal:
Sustainable Manufacturing
1
2
3
Expanding the Use of Solar Energy ....................................... 10
Environmentally Conscious Product Design .......................... 13
Reducing Negative Environmental Impacts in Production
Facilities ................................................................................. 15
Special Focus
1. The Customer Assistance Center .......................................... 17
2. CSR Activities at Sales Bases in Japan ................................. 19
3. Environmental Education with Weathercasters ...................... 21
Sharp and the Environment
Advanced Measures for Environmental Conservation as
Management Policy .................................................................... 25
Advancing Super Green Management ....................................... 27
Environmental Accounting ..................................................... 29
How Business Activities Relate to the Environment .............. 30
Developing Super Green Technologies ...................................... 31
Creating Super Green Products and Devices ............................ 33
Building Super Green Factories ................................................. 35
Curbing 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
Progress in the Social Dimension of CSR................................... 43
For Customers
Living Up to Customers’ Trust by Delivering Satisfaction .......... 45
Reinforcing Information Security ............................................... 47
■ Links to the Sharp Website
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 website (http://sharp-world.com/
corporate/eco/report2007/). Items that are covered on the website
are listed at the bottom of the pages in this report. The last page
also lists the items covered on the website.
■ Period and Items Covered
Period covered: Fiscal 2006 (April 2006 to March 2007)
However, some actual facts prior to this period, as well as
subsequent policies, objectives, and plans 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)
39 (17 domestic, 22 overseas)
34 (11 domestic, 23 overseas)
■ Referenced Guidelines
• Environmental Reporting Guidelines (Fiscal 2003 Version),
Ministry of the Environment, Japan
• Sustainability Reporting Guidelines Version 3.0 (Japanese),
Global Reporting Initiative (GRI)
• Environmental Accounting Guidelines 2005,
Ministry of the Environment, Japan
• Environmental Performance Indicators for Organizations
(Fiscal 2002 Version), Ministry of the Environment, Japan
For Shareholders and Investors
Appropriate Return of Profits and Information Disclosure ......... 48
■ Scheduled Publication Date for Next Report
For Business Partners
Mutual Prosperity with Suppliers and Dealers ........................... 49
■ Inquiries
For Employees
Creating a Fair, Positive, and Progressive Workplace ................ 51
For Local Communities
Social Contribution Activities as a Corporate Citizen ................ 53
Third-Party Review ..................................................................... 55
Information on Sharp’s Website ................................................. 56
Information on website
1
This Environmental and Social Report consists of four sections.
The Special Feature section introduces Sharp’s efforts to carry
out sustainable manufacturing from three angles: expanding the use
of solar energy, environmentally conscious product design, and
reducing negative environmental impacts in production facilities.
The Special Focus section looks at some particularly interesting
examples from Sharp’s continuing environmental and social
contribution efforts.
The Sharp and the Environment section covers the policies,
objectives, and achievements of Sharp’s environmental efforts.
In Sharp and Society, Sharp reports on the goals it has set and
the progress it is making in the social dimension of CSR activities for
various stakeholders.
2008 (published annually since 1999)
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]
■ GRI content index ■ Sites (companies) covered by environmental performance data
■ Calculation standards for environmental performance indices
Environmental and Social Report 2007
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 2007
2
A Message to People and the Earth
Contributing to Building a Sustainable Society
Through a Forward-Looking Approach
to the Environment
Katsuhiko Machida
Chairman & CEO, Sharp Corporation
Mikio Katayama
President & COO, Sharp Corporation
Chairman Machida (left) and President Katayama
The Starting Point Was “Make Products that
Others Want to Imitate…”
This year, Sharp will celebrate the 95th anniversary of its
founding. Ever since founder Tokuji Hayakawa
established his own metalworking business at age 19,
Sharp has carved out a history of originality and
creativity—from the Ever-Sharp Pencil to crystal radios,
CRT TVs, microwave ovens, solar cells, electronic
calculators, the LCD Viewcam, and the LCD TV.
3
be said to be the greatest challenge of our time. Sharp
regards its mission to be accomplishing this goal.
Working to Protect the Environment for Half
a Century
Mr. Hayakawa had a habit of saying, “Make products
that others want to imitate.” In other words, focus on
applying one’s creativity and ingenuity to nimbly make
products that will become the mainstream for the next
generation. This fundamental notion was the starting
point for Sharp. In addition, what nurtured Mr.
Hayakawa’s creativity and originality was an intense
curiosity about the future and a sense of gratitude
toward those who had shown him kindness and toward
everyone with whom he dealt. These ideas later became
Sharp’s business creed of “Sincerity and Creativity” and
have been passed down even to this day.
Sharp has long been in the forefront of working to
protect the global environment. Solar cells are now
attracting attention as a source of clean energy. Sharp
initiated R&D in this field in 1959, nearly half a century
ago, and in 1963, successfully launched mass
production of these devices. Sharp continued steady,
incremental development of this technology, and today,
Sharp has significantly broadened this business area to
cover residential and industrial uses. In terms of
production volume, as of last year, Sharp has been the
world’s leading producer of solar cells for the past seven
years in a row. Solar cells are now poised to enter
widespread use, and given the tremendous potential for
further technological development, Sharp’s desire is to
contribute to protecting the environment by broadening
their use in the future.
What underlies Sharp’s goal of making products that will
become the mainstream of the next generation is
nothing less than concern for the environment.
Sustainable manufacturing means, by extension,
building a sustainable society, and indeed, doing so can
Sharp has also worked to take the lead in energy and
resource conservation. For example, Sharp led the
world in R&D on LCDs that are now known as thin,
energy-efficient, resource-saving devices. In 1973,
Sharp successfully developed a practical use for LCDs
Environmental and Social Report 2007
as displays in electronic calculators. This allowed Sharp
to greatly reduce the size of calculators, making them
small enough to fit in a shirt pocket and, since they
could be powered by a single dry-cell battery, enabling
long-term use. Sharp never ceased R&D in this area,
and as a result, today, LCDs are widely used as
high-resolution displays for both consumer and
industrial use, and are finding application in high-quality
displays for mobile phones and in big-screen,
thin-profile, high-definition AQUOS LCD TVs.
The AQUOS incorporates state-of-the-art environmental
technologies from top to bottom. Its finely honed
features deliver performance befitting this era of the
environment, including energy efficiency, low resource
utilization, long service life, use of green materials, and
design for recycling.
Sharp has also installed the latest in environmental
protection systems at the Kameyama Plant where the
AQUOS is produced, and has set a goal to bring
environmental consciousness at the world’s highest level
to every activity in which the plant engages.
Aiming to Become an Environmentally
Advanced Company
Since fiscal 2004, Sharp has made strengthening its
environmental efforts a company-wide management
policy.
Sharp set a medium-term corporate objective of
becoming an environmentally advanced company, and
defined its corporate vision as: Sharp’s energy-creating
and energy-saving products equalize Sharp’s
greenhouse gas emissions. To work toward making
these a reality, Sharp implemented the Super Green
Strategy that strives to imbue all corporate activities with
a forward-looking approach toward the environment.
The details of these efforts are presented in this
Environmental and Social Report. Included among them
is Sharp’s response to global warming, an especially
pressing issue today. Sharp’s goal is to have its
energy-creating and energy-saving products equalize its
greenhouse gas emissions so that the company causes
no increase in the level of these gases. Sharp will
accomplish this goal by significantly expanding its solar
energy business, and by implementing energy-efficient
product designs and energy-saving measures
throughout its production facilities, offices, and the
distribution chain.
Furthermore, by providing photovoltaic power systems
and energy-efficient consumer electronics, Sharp is
encouraging ordinary people to adopt lifestyles that will
not contribute to global warming.
In addition to these, Sharp is aiming to achieve
sustainable manufacturing by developing technologies
to reduce consumption of fossil resources, including
closed-loop material recycling of plastics* and using
plant-based resin materials, as well as expanding its
recycling business for products that have reached the
end of their useful service life.
Sharp is also contributing to building a sustainable
society through environmental education programs in
elementary schools and through Sharp Green Club
activities.
With “Sincerity and Creativity”—Toward
Becoming a More Trusted Company
Sharp will continue its ongoing efforts to be a company
worthy of the trust of society. To this end, Sharp is
practicing fair and open management based on
“Sincerity and Creativity” and will strive to fulfill its social
role and responsibilities toward achieving a sustainable
society.
In particular, regarding product-making, the starting
point for any manufacturer, Sharp has further reinforced
its system that places the highest priority on product
safety and ensuring product quality based on the Sharp
Voluntary Product Safety Action Policy which was
formulated in May of this year.
In addition, Sharp is committed to compliance with
relevant laws and regulations based on adherence to
the Sharp Group Charter of Corporate Behavior and the
Sharp Code of Conduct, and will foster the development
of human resources, the most important management
asset, as well as boost efforts on the CSR front
throughout the supply chain.
During the 95 years since its founding, Sharp has
enjoyed the patronage of customers around the world.
In the future, with the utmost in “Sincerity and
Creativity,” Sharp will concentrate its energies on making
products that will become the mainstream of the next
generation and work to contribute to society through
offering new lifestyles.
We look forward to hearing your frank comments and
opinions.
June 2007
* Recovery of plastic materials from used appliances covered by the
Japanese Home Appliance Recycling Law and repeatedly using them
as raw material for plastic components in new products.
Environmental and Social Report 2007
4
Management System
Corporate Governance
Sharp will enhance the governance system of the entire group with the goals of ensuring stable, transparent
management and maintaining proper work processes while strengthening the Director/Corporate Auditor system.
Efforts (Achievements) for Fiscal 2006
• Improve the internal control
system
Efforts for Fiscal 2007
• Have the internal control system in place and operating
• Analyze operation and implement problem-solving measures
for the internal control system
• Conduct internal control audits
• Build internal control IT system
• Formulated a basic policy for internal control
• Established the Internal Control Committee
• Implemented various measures for improving the
internal control system
• Provided internal control e-learning
Basic Concept of Corporate Governance
■ Diagram of corporate governance/
internal control system
Shareholders and stakeholders
In an effort to further strengthen manufacturing and technological competency, Sharp is committed to making speedy
managerial decisions and to enhancing management quality.
Environmental and Social Report 2007
Support, guidance
Monitoring
5
Self-audit
Domestic/overseas subsidiaries
Business execution
Self-audit
Supervision,
creation of system of
internal control
Directors
Accounting/business audit
Auditors
Accounting audit
• Established the Internal Audit Division that unifies internal
audit departments and is independent from business
execution departments (April 2006)
• Established the Internal Control Committee (May 2006)
• Established the Advisory Board (July 2006)
• Appointed a director in charge of legal affairs and placed the
Legal Affairs Division and the Intellectual Property Group
under the supervision of the director (April 2007)
• Approved the adoption of a plan regarding large-scale
purchases of Sharp Corporation shares (Takeover Defense
Plan) at the general meeting of shareholders (June 2007)
Ensure business is carried
out appropriately
Business execution
Accounting auditors
In July 2006, Sharp established the Advisory Board to obtain a
wide range of opinions and proposals from well-informed
outside experts from various fields in order to assist in
management decisions.
Self-audit
Board of Corporate Auditors,
Corporate Auditors
To ensure transparency and soundness in management
through an enhanced corporate governance system, 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.
Business execution
Functional groups
Accounting/business audit
Enhancement of
Corporate Governance System
Business groups, sales
and marketing groups
Support, guidance
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.
Ensure business is carried out appropriately
Internal audit
Sharp increased the number of auditors from four to five in
June 2007. The fact that three of Sharp’s five corporate
auditors are from outside the company ensures that company
operation is sound.
President
Internal audit function: Internal Audit Division
Business activities of Sharp are clearly bounded by the
development, manufacture, and sales of products as well as
devices. Each area is highly specialized yet 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 individual managerial responsibilities and execute
business responsively and effectively. Sharp also believes that
this enhances reciprocal management functions.
Appropriate disclosure, provision of information
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
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
Group Management
The Sharp Group has created a global internal control system
to ensure effective governance of the entire group, including
Sharp subsidiaries in Japan and overseas.
Subsidiaries in Japan and overseas conduct self-audits to
show Sharp business groups and sales & marketing groups
that business is being conducted properly. And with the goal of
continuous improvement, the company is planning to conduct
internal control audits for the entire Sharp Group.
Management System
Compliance and Risk Management
Business ethics and legal compliance are the minimum social responsibilities for any corporation. Under a system
that closely coordinates CSR with risk management, Sharp is strongly committed to adhering to business ethics
and ensuring legal compliance.
Efforts for Fiscal 2007
Efforts (Achievements) for Fiscal 2006
• Improve the compliance training
system
• Provided legal affairs/compliance e-learning
• Conducted a mandatory compliance seminar for directors
and management in business groups
• Revised job-level-specific compliance training curriculum
• Improve compliance enlightenment tools
• Create a compliance guidebook
• Review management methods for
important risks
• Revised the risk assessment standards to identify
important risks (“level of impact” x “probability of occurrence)
• Create a BCM (business continuity management) system
• Create a PDCA cycle-based management system to improve
BCP (business continuity plan) of all domestic production sites
Raising Awareness of 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 and divided into two
documents: the Sharp Group Charter of Corporate Behavior,
the principles of Sharp’s corporate behavior; and the Sharp
Code of Conduct, 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), like CSR, is
indispensable in business management because it prevents
violations of laws and lowers the risk of loss while at the same
time helping the company quickly adapt to changing business
environments. That is why the company pursues both CSR and
BRM activities.
Sharp holds meetings of the CSR/BRM Committee to discuss
and check progress, policies, and action plans for the entire
company. 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
Senior Executive Vice President (Chief General Administration
Officer) in order to plan and implement CSR/BRM measures for
the entire 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. R-CATS activities are conducted in all
Sharp departments, from production and quality to product
planning and technical, right down to sales, procurement, and
administration.
* R-CATS: Revolution Creative Action Teams. See also page 43.
Preventing Unlawful Grants and Expenditures
The Group Charter of Corporate Behavior and the Code of
Conduct contain the provisions to strictly prohibit any form of
corrupt behavior such as money extortion and bribery, and
require that donations are handled in a proper manner.
Sharp prevents illegal payoffs and expenditures through a
system of compulsory examinations by the Donation Examination Committee in Japan on the adequacy of monetary
donations and support and other cases of expenditure.
Information on
website
Strict Business Ethics and Legal Compliance
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
continued to carry out wide-ranging educational programs in
Japan.
In fiscal 2006, Sharp expanded the scope of job-level-specific
training, and newly provided training to directors and management of business groups in addition to managers and new
employees. In fiscal 2007, Sharp will also provide training to
mid-career employees, and 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 Group Charter of Corporate Behavior
and the Code of Conduct (fiscal 2005 and 2006)
• Job-level-specific training (directors, management of each
business group, managers, and new employees) (fiscal 2006)
• Training and online lectures in specialized fields (on the
Japanese Electrical Appliance and Material Safety Law, safety
standards in each country, and laws related to antimonopoly,
subcontracting, unjustifiable premiums and misleading
representations, intellectual property rights, export control,
labor, etc.) (held when necessary)
• e-learning for all employees:
- Environmental awareness, personal information protection
(fiscal 2004)
- CSR, information security/personal information protection
(fiscal 2005)
- Legal affairs and compliance, internal control, information
security/personal information protection (fiscal 2006)
Consultation Hotline for Compliance Issues
Sharp Corporation and its domestic subsidiaries have
established a hotline for reporting compliance problems and
receiving consultation. The hotline is open to employees,
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 interest, since April 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 penalties against people who report compliance
violations or seek consultation.
■ Sharp Group Charter of Corporate Behavior (full text) ■ Sharp Code of Conduct (full text)
■ Sharp Group’s efforts to firmly establish CSR and BRM ■ Disaster risk management ■ Respect for intellectual property rights
Environmental and Social Report 2007
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
Representatives
electronics and information products, and “Electronic
Components” that provide the key components of
Founded
Operations
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.
Capital Stock*
Number of Employees**
Sharp Corporation
22-22, Nagaike-cho, Abeno-ku, Osaka, Japan
Katsuhiko Machida, Chairman & CEO
Mikio Katayama, President & COO
September 15, 1912
Manufacture and sales of audio-visual,
communication and information equipment,
home appliances, LSIs, LCDs, other
electronic components
204,675 million yen (rounded down to the
nearest million)
48,927 (29,798 in Japan; 19,129 overseas)
* As of March 31, 2007
** Sharp Corporation and its consolidated subsidiaries
Main Products
Audio-visual 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, facsimiles, telephones,
mobile phones, PHS terminals
Home appliances
Water Oven (superheated steam oven)
Air conditioner
Information equipment
Environmental and Social Report 2007
1/2.5-inch 8-megapixel CCD
Triple Directional Viewing LCD
Mobile Advanced Super View LCD
• Demonstrated using mirrors with an
image of a dog in the center, Mt. Fuji to
the left, and a map to the right
• High-contrast images and wide viewing
angle
TFT LCD modules, Duty LCD modules, System LCD 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, digital
copier/printers, electrostatic copiers, supplies for copiers and printers,
software, FA equipment, ultrasonic cleaners
7
CCD camera module
CCD/CMOS imagers, LSIs for LCDs, microcomputers, flash memory,
combination memory
LCDs
Refrigerators, superheated steam ovens, microwave ovens, air
conditioners, washing machines, vacuum cleaners, air purifiers,
dehumidifiers, humidifiers, electric heaters, small cooking appliances
Internet AQUOS PC TV
LSIs
Photovoltaic module for residential use
Blue-violet low-power laser diode
Solar cells, components for satellite broadcasting, digital terrestrial
tuners, RF modules, network components, laser diodes, LEDs, optical
pickups, optical sensors, components for optical communication,
regulators, switching power supplies, analog ICs
Increasing Corporate Value by Strengthening One-of-a-Kind Strategy
Fiscal 2006 Financial Results
Outlook for Fiscal 2007
Sharp took assertive initiatives through the introduction of one-of-a-kind
products and the development of proprietary devices that support the
creation of these products. The company consistently focused on
making highly distinctive products and devices and thus realized higher
profitability.
Sharp will achieve further growth by strengthening its one-of-a-kind
strategy and working to improve brand value and secure competitive
advantage in the global market.
In the Consumer/Information Products business, Sharp will further boost
its competitiveness in LCD TVs through the worldwide introduction of
large-size full high-definition models featuring even better picture quality,
performance, and design. Sharp will also pursue high-efficiency
production systems in major global consumer markets and thorough
cost reduction. One-of-a-kind products in other business areas will be
also upgraded. These include mobile phones and wireless PDAs
incorporating the company’s original technologies.
In the Consumer/Information Products business, Sharp worked to
further expand sales of LCD TVs. With increasing global demand for
LCD TVs, Sharp expanded its lineup of large-screen TVs with a focus on
full high-definition models and worked toward increasing sales worldwide.
Other efforts included the release of more unique products, such as
mobile phones with original technology capable of receiving “one
segment broadcasting” or “One Seg,” a new type of terrestrial digital
broadcasting for mobile equipment.
Sharp will expand its Electronic Components business through the
following measures. To further expand the LCD business, Sharp aims to
increase sales of large panels for LCD TVs with the start of the third
phase at the Kameyama No. 2 Plant. Other measures include
strengthening sales of System LCDs for mobile equipment. In the area of
solar cells and other major devices, Sharp will work to further boost
competitiveness through innovative production technologies and further
cost reduction.
In the Electronic Components area, Sharp strived to further expand its
LCD business. For large-size LCDs, Sharp began operations at the
Kameyama No. 2 Plant. This is the world’s first LCD production facility to
adopt 8th generation glass substrates, which enable highly efficient
production of 40- and 50-inch-class LCD panels. Sharp also started the
second phase at the plant to increase LCD production capacity. For
small- and medium-size LCDs, Sharp increased sales of System LCDs
for mobile equipment, including mobile phones.
In addition to these efforts, Sharp will continuously promote R&D for
future technologies and promote low-cost operation in order to achieve
further growth. Lastly, Sharp will continue to take initiatives proactively to
enhance its CSR efforts, which include contributing to environmental
preservation and complying with laws and statutes in conducting
business.
Additionally, Sharp has taken various other actions, such as capacity
enhancement for solar cells and creation of distinctive devices intended
for its uniquely featured products.
These efforts resulted in record-high net sales, operating income, and
net income in fiscal 2006 on a consolidated basis.
Principal financial performance
indicators (consolidated)
Net sales, operating income, and net income (consolidated)
Operating income, net income (billions of yen)
Net sales (billions of yen)
3,600
240
3,000
3,127.7
186.5
2,797.1
2,400
2,539.8
151.0
2,257.2
163.7
200
7.9
8
160
8.4
8.9
6.6
6
2,003.2
121.6
1,800
99.4
101.7
88.6
76.8
1,200
120
4
3.6
80
60.7
32.5
600
(%)
10
40
3.4
2.9
2
3.6
3.7
1.6
0
0
2002
2003
2004
2005
2006 (fiscal year)
Fiscal 2006 consolidated net sales by
product group (component ratio)
Fiscal 2006 consolidated net sales
by region (component ratio)
Electronic components
Consumer/
34.2%
information products
65.8%
Overseas
51.2%
2003
2004
Other
6.1%
Domestic
48.8%
2005
2006 (fiscal year)
ROA (return on assets)
R&D expenditures (consolidated)
(billions of yen)
(%)
200
175.5
185.2 189.8
12
162.9
Audio-visual
and
communication
equipment
44.2%
LCDs
20.1%
LSIs
4.5%
2002
ROE (return on equity)
■ Net sales ■ Operating income ■ Net income
Other
electronic
components
9.6%
0
Europe
16.7%
Home
appliances
7.6%
152.1
7.6
Japan
48.8%
The Americas
18.6%
Information
equipment
14.0%
Information on
website
150
China
9.8%
6.9
6.6
6.1
100
6
50
3
0
For the year ended March 31, 2007, “China,” which had been previously included in “Other,”
was indicated as one of the geographic segments and “Asia,” which had been indicated as one
of the geographic segments, was reclassified into “Other.”
9
7.2
2002
2003
■ R&D expenditures
2004
2005
0
2006 (fiscal year)
Ratio to net sales
http://sharp-world.com/corporate/eco/report2007/ ■ Financial results
Environmental and Social Report 2007
8
Special Feature
Sharp’s Goal:
Sustainable Manufacturing
Sharp’s goal of making products that will become the mainstream of the next generation is nothing
less than to evolve environmentally sustainable manufacturing that also protects the environment.
Sharp pioneered the era of broadcast information with Japan’s first domestically produced crystal
radio set and black & white TVs, opened up the era of electronics with the development of the
world’s first desktop electronic calculator, and broke new ground in information and
telecommunications with LCDs and their application products.
Today, Sharp is working to achieve sustainable manufacturing befitting this age of the environment.
This report presents an overview of Sharp’s activities seen from three perspectives: Expanding the
Use of Solar Energy, Environmentally Conscious Product Design, and Reducing Negative
Environmental Impacts in Production Facilities.
1
Expanding the Use of Solar Energy
2
Environmentally Conscious Product Design
3
Reducing Negative Environmental Impacts in Production Facilities
Photovoltaic power facility in
Sonnen, Bavaria, Germany
9
Environmental and Social Report 2007
On lighthouses as well as space
satellites, solar cells are
indispensable as a valuable source
of energy in harsh environments.
In outer space, repairs cannot be
easily made and this demands
high reliability. Sharp is the only
Japanese solar cell manufacturer
certified by the Japan Aerospace
Exploration Agency. Sharp solar
cells first provided power to
Japan’s Ume satellite in 1976, and
by April 2006, had been installed
on more than 150 satellites.
Photovoltaic power system installed in 1966 at the lighthouse on Ogami Island in Nagasaki Prefecture, Japan
Photo courtesy of Japan Coast Guard
1
World’s first automatic rendezvous docking satellites: Orihime and Hikoboshi
Photo courtesy of Japan Aerospace Exploration Agency (JAXA)
Expanding the Use of Solar Energy
Sharp’s Challenge as No. 1 Maker:
Lead the Way into the Era of Clean
Energy with Solar Power
R&D Began During a Home Appliance Boom
in Japan
Sales of Residential Systems Lead to
Dramatically Expanded Production
Sharp began research on solar cells in 1959, almost
exactly 48 years ago. The television set, the washing
machine, and the refrigerator had captured the spotlight
as the “three sacred treasures” every Japanese
household desired. 1959 was the height of a
tremendous boom in home appliances. Needless to say,
global environmental issues had not yet become a topic
of conversation for the general public.
The scale of the solar energy business would be small if it
depended only on demand from lighthouses and space
satellites, and profitability would be next to non-existent.
These past 48 years have also seen many difficult times,
including business recessions. But Sharp kept faith in the
potential of solar power for the future. The company
quietly and unpretentiously persevered in keeping the
business alive and developing the technology. The
turning point came in 1994. Japan’s Ministry of
International Trade and Industry (now the Ministry of
Economy, Trade and Industry) launched a monitoring
program for residential PV systems that subsidized costs
for homes with photovoltaic power systems. A
grid-intertie mechanism was also established that
enabled electric utilities to purchase any surplus
electricity generated by individual residences. As a result,
the use of photovoltaic power systems spread to ordinary
homes, manufacturing economies of scale also brought
costs down, and demand began to grow steadily. Sharp
launched sales of residential systems in conjunction with
this program, and augmented its production capacity to
satisfy the resulting growth in demand. Sharp also
concentrated on technological development, broadened
its product lineup, as well as improved and expanded its
sales and installation network.
Research on solar cells was low profile and
unspectacular compared to the development of home
appliances that dominated the market at that time.
Sharp researchers, however, diligently pursued this
clean energy conversion technology. They were
convinced that utilizing the inexhaustible and cheap
energy of the sun to create electricity—with no toxic
substances or CO2 and without causing noise or
vibration—would enable society to continue living in
peace and abundance well into the future.
After four years of trial and error, Sharp established the
technology to mass produce solar cells in 1963. But
costs were still high at that time, and the main use for
solar cells was as a source of power in areas without
access to electricity, such as remote lighthouses. Solar
cells installed on lighthouses demand a guarantee of
reliable operation under harsh conditions, notably
exposure to salty air, to say nothing of the powerful
rainstorms generated by typhoons. In addition, since the
conditions affecting installation at each lighthouse differ,
the technicians involved must travel to each site, even
remote uninhabited islands, to evaluate the local
environment on the spot. Sharp photovoltaic power
systems, which have been installed on lighthouses in
1,810 locations as of April 2006, are custom-designed
using the data gathered by those technicians to match
local circumstances. That same design technology is
being used to full advantage in present-day photovoltaic
power systems for residential and industrial use.
As a result, Sharp has now been the world leader* in
solar cell production for the past seven years in a row,
since 2000.
* According to the March 2007 issue of PV News, a US publication.
Residential photovoltaic power system
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 2007
10
Expo ‘70 Commemoration Park, Osaka Prefecture, Japan
Decentralized photovoltaic power system, Noyon Village, Mongolia
CIS Tower, Manchester, UK
Nishi-Harima Branch Office, Hyogo Prefecture, Japan
Salzburg Airport, Austria
Football stadium, Mainz, Germany
Corporate Vision:
Sharp’s Energy-Creating and Energy-Saving Products Equalize Sharp’s Greenhouse Gas Emissions
Sharp aims to reduce greenhouse gas emissions from its worldwide business activities to such an extent that, by fiscal
2010, the quantity of greenhouse gases emitted that year will equal the quantity of greenhouse gases avoided that same
year through customer use of both Sharp solar cells sold during the preceding 20 years and of Sharp energy-saving
products.
Greenhouse gas emissions
from Sharp’s worldwide
business activities
CO2 emission reductions
through customer use
of Sharp solar cells and
energy-saving products
By reducing as much as possible the amount of greenhouse gases
emitted as a result of Sharp’s worldwide business activities, while at
the same time, significantly increasing the magnitude of reductions in
greenhouse gas emissions through customer use of Sharp
energy-creating solar cells and energy-saving products, the net
reduction in greenhouse gases will more than balance out the level of
emissions by fiscal 2010.
For fiscal 2006, greenhouse gas emissions were approximately 1.73
million t-CO2*1. In contrast, the estimated amount of electrical power
generated in fiscal 2006 by solar cells manufactured by Sharp during
the 20-year period from 1986 to 2005 was approximately 1,322
GWh*2. This is equivalent to a reduction in greenhouse gas emissions
of 560,000 t-CO2*3.
*1 See page 36 for details.
*2 Calculation based on a total of 1,272 MW of solar cells produced by Sharp in
the 20 years from 1986 to 2005. (For details on how this figure was calculated,
please see the Sharp website.)
*3 Calculated using the figure of 0.425 kg/kWh for CO2 emissions intensity
(emissions per kWh of electricity consumed), announced by the Federation of
Electric Power Companies of Japan (for fiscal 2005).
Aiming to Have Energy-Creating and Energy-Saving Products Equalize
Greenhouse Gas Emissions
In August 2004, six months before the Kyoto Protocol went
into effect, Sharp set a target in its efforts to prevent global
warming and defined its corporate vision that the quantity
of greenhouse gases emitted in fiscal 2010 will equal the
quantity of greenhouse gases avoided that same year
through customer use of both Sharp solar cells sold during
the preceding 20 years and of Sharp energy-saving
products. As the world’s leading manufacturer of solar cells,
Sharp is focusing its efforts on the further development and
diffusion of photovoltaic power generation to reduce
greenhouse gases.
Recently, the movement to introduce and expand renewable energy is gaining momentum, particularly in Europe,
but also in the US, China, and the rest of Asia. As a result,
demand for photovoltaic power systems is skyrocketing.
11
Environmental
and Social 2007
Report 2007
シャ
シャープ環
プ環境
境・社会報告書
However, costs associated with photovoltaic power
generation are fairly high compared to thermal or nuclear
power generation, and solar energy accounts for a tiny
percentage of the total amount of power generated
worldwide. Further reductions in costs will be needed to
stimulate widespread use on a global scale.
With the know-how and technologies gained from long
years of experience in this field, Sharp is furthering R&D on
a wide variety of solar cells and pursuing the potential for
still wider use of solar energy. These new solar cells include
silicon (single-crystal, polycrystalline, thin-film), as well as
compound and dye-sensitized types that are expected to
satisfy the requirements for lower costs and to meet
burgeoning demand.
Concentrator
mechanism
Lens
Photograph showing appearance in clear weather
City Hall, Suzuka City, Mie Prefecture, Japan (crystalline thin-film see-through solar cell modules)
Concentrator tracking photovoltaic power system
Solar cell
Light is
concentrated
approx. 700
times
The concentrator tracking
photovoltaic power system was
developed mainly for overseas
electric power utilities. At present,
data collected along the coast of
the Mediterranean Sea and in
desert areas in the American
Southwest is being used in
research on further improvements
with a goal of mass production in
the near future.
Sharp photovoltaic
modules and power
conditioners were the
first in the industry to
acquire the Eco Mark*.
Their outstanding
environmental features,
such as generating no
environmental impact,
have been recognized by
independent outside
organizations.
JH–S6A2/L6A3
* The Eco Mark is given to
products that the Japan
Environment Association
(JEA) recognizes as helpful
for protecting the
environment.
Daytime Night
Interior
This multi-use commercial complex in Matsudo City, Chiba Prefecture, Japan uses Lumiwall illuminating solar
panels on the front of the building, which combine crystalline thin-film see-through solar cells with white LEDs.
NE–050LT/100CT/050RT
Developing Proprietary
Technologies with the Goal of
Full-Fledged Widespread Use
Sharp is currently developing thin-film silicon solar cells and
concentrator photovoltaic power systems as new
technologies that will expand the potential of solar energy.
Compared to crystalline silicon solar cells, which currently
represent the dominant technology, thin-film silicon solar
cells use significantly less silicon, about one one-hundredth
the thickness of the normal silicon layer. Crystalline thin-film
“see-through” solar cells in which laser light is used to
make slits across the cell surface are being used in
windows and skylights on buildings. In addition, Sharp’s
Lumiwall illuminating solar panels, which combine
crystalline thin-film see-through solar cells and white LEDs,
integrate power generation, daylight transmission, and
self-illumination functions into a single module. During the
day, solar cells generate power while allowing natural
sunlight to pass through. At night, LEDs embedded in the
same panel provide illumination.
Concentrator photovoltaic power systems generate
electricity with high efficiency by tracking the sun and by
using a Fresnel lens* to concentrate sunlight onto a single
point to irradiate the cell with strong light. The cell is the
same compound cell used in space satellites, offering high
power generating efficiency with a mere seven mm square
surface. Such systems minimize the amount of raw
materials used and thus reduce power generation costs.
Proof-of-concept experiments are now underway along the
Mediterranean Sea coast and in desert areas in the
southwestern United States, working toward putting these
systems into practical use in the near future.
Information on
website
■ Photovoltaic power systems
■ Corporate vision
Sharp is making an all-out effort to develop new
technologies with the knowledge and experience
accumulated over the past half century to achieve
sustainable manufacturing and enhance the prevention of
global warming through the full-scale diffusion of solar
energy.
* A Fresnel lens is a type of lens that has a surface consisting of a
concentric series of simple sections, creating a thinner, lighter weight
lens. The cross section has a sawtooth-like appearance. Originally
invented for use in lighthouses.
Make Solar Power the Basic Energy Source
of a Sustainable Society
Dr. Takashi Fuyuki
Professor, Graduate School
of Materials Science
Nara Institute of Science
and Technology
Looking at the rapid increase in solar cell
production in recent years, I think Sharp,
having consistently pioneered new frontiers in
solar power technology, has arrived at a
crucial moment. To promote solar power as a
basic energy source for the future, I would
like to see Sharp take full advantage of its
technological capabilities gained so far and
pursue the planning and construction of new
energy network systems incorporating solar
power.
Building a Large-Scale Concentrator
Solar Power Plant in the Desert
Solar cells used in concentrator systems are
the same compound cells that Sharp
developed for use in outer space. They have a
high conversion efficiency of 37%, but are also
expensive. That’s why we are using lenses to
concentrate sunlight and generate as much
electricity as possible. Currently, proof-ofconcept experiments are underway on the
coast of the Mediterranean Sea and in the
southwestern United States. We are working
hard to solve a mountain of problems one by
one, such as heat dissipation and preventing
damage from earthquakes, so to bring them
into practical use as soon as possible.
Masao Tanaka
General Manager
Project Planning
Concentrator Systems Center
Solar Systems Group
Sharp Corporation
Environmental and Social Report 2007
12
The AQUOS R Series released in March 2007.
The R Series offers features that represent the ultimate in Sharp’s continuously refined environmental technologies.
Europe
US
LC-42SA1E
Japan
LC-52D92U
LC-52GX1W
The environmentally conscious design of the AQUOS LCD TV has received high marks the world over.
In Europe, in 2005, the AQUOS was the first TV in the industry to acquire the European Union (EU) Eco-label*1. By the end of February 2007, a total of 36
models had been awarded this designation. In the United States, the main models of AQUOS have qualified for the Energy Star*2 program. And in Japan,
the AQUOS LC-52GX1W won the Eco Products Awards Council chairman’s prize (Award of Excellence) at the 3rd Annual Eco Products Awards.
*1 The Eco-label is a logo applied to products that meet environmental standards set by the European Commission, such as low power consumption, design for recycling, use of materials
with low environmental impact, etc. Also known as the EU Eco Flower.
*2 Energy Star is a logo applied to products that meet environmental standards, such as low power consumption, set by the US Environmental Protection Agency (EPA), the Japanese
Ministry of Economy, Trade and Industry, and others.
2
Environmentally Conscious Product Design
Energy & Resource Savings, Green Materials, and
Recyclability—The Concepts Behind Environmentally
Conscious Product Design Epitomized by the AQUOS
Green Product & Green Device
Development
Sharp formulated its Green Product Guidelines in fiscal
1998 with its 3G-1R*1 environmental strategy developed in
the same year, and established a systematic set of policies,
standards, and processes for environmentally conscious
product design. Sharp then set objectives and began to
promote them across the entire company. As a result,
environmentally conscious design permeated every aspect
of new products, and all new products met Green Product
standards. At the same time, Sharp introduced a system
for certifying Green Products with particularly high levels of
environmental performance as Green Seal Products. Sharp
set annual sales targets for them, and the percentage of
such products sold has gradually increased each year.
Beginning in fiscal 2004, Sharp established standards for
Super Green Products that offer the ultimate level of
environmental performance based on a newly established
Super Green Strategy*2. Meanwhile, Sharp rigorously
revises the standards each year for Super Green Products
and Green Seal Products, while setting ever higher sales
percentage targets and working to expand sales (see
graph at right).
Sharp also established standards for Green Devices and
Super Green Devices in fiscal 2004 and fiscal 2005,
respectively, to totally integrate environmentally conscious
design into electronic devices. It is setting annual sales
percentage targets for devices in a manner similar to those
for products.
■ Ratio of Green Seal Products and Super Green Products to net sales
(%)
100
93
Green Seal Products
80
74
Environmental and Social Report 2007
85
80
65
60
Super Green Products
54
43
50
49
50
40
35
40
20
10
30
20
5
0
2002
2003
Actual results
2004
2005
2006
2007
(fiscal year)
Target
Data for Super Green Products in fiscal 2004 is for the 2nd half of the year only.
■ Power consumption for 32V-inch AQUOS LCD TVs by year
(kWh)
300
200
271
32C-HE1
32-inch
CRT TV
227
238
LC-32GD1 LC-32GD4
100
0
200
LC-32GD6
154
LC-32BD1
147
LC-32D10
135
LC-32GH1
1st half 2000 2nd half 2003 1st half 2004
1st half 2005 2nd half 2005 1st half 2006 2nd half 2006
(fiscal year; term)
*1 3G-1R strategy: Sharp’s company-wide environmental strategy formulated by the Environmental
Protection Group established in 1997. A variety of company-wide policies and measures were
focused in four action themes: Green Products, Green Factories, Green Mind, and Recycling.
*2 For details on the Super Green Strategy, see page 26.
Information on website
13
90
87
■ AQUOS ■ Green Products
LC-46RX1W
The AQUOS LC-46RX1W uses green materials exclusively
Cabinet uses halogen-free resins and can be
closed-loop material recycled
Packaging buffer made of recycled polystyrene foam
Stand uses plant-based resin paint and resins blended
with recycled materials
Speaker grill uses readily recyclable metal materials
Halogen-free power cords and wiring
Screws and nuts contain no hexavalent chromium, a
toxic heavy metal
Printed circuit boards use lead-free solder
Chassis uses chrome-free sheet steel containing no
toxic hexavalent chromium
Instruction manuals are printed on 100% recycled
paper using soy ink
AQUOS’ Environmentally
Conscious Design
Included among these are plant-based resin paint applied
to the stand, a proprietary technology developed in
collaboration with Kansai Paint Co., Ltd., and the
closed-loop material recyclable rear cabinet. The cabinet
incorporates a special technology that enables its plastic
material to be recovered once the product’s service life has
ended and the material to be repeatedly used in new home
appliances. Both of these are advanced environmental
technologies that embody Sharp’s basic policies intended
to reduce the consumption of fossil-based resources to the
greatest extent possible.
The environmental performance of the AQUOS has
garnered high marks both in Japan and internationally,
including being the first TV set to acquire the “Eco Flower”
Eco-label from the EU, qualifying for the Energy Star in the
US, and being the first audio-visual product to win a prize
at the Eco Products Awards in Japan.
In the future, Sharp intends to incorporate a wealth of new
advanced environmental technologies into the AQUOS, its
flagship product built on the ideal of sustainable
manufacturing that Sharp is striving to achieve.
* A measure of the time until screen brightness declines by half under continuous
viewing in a room at 25°C with screen brightness in Normal mode.
*1 Used for models LC-20D10-B/W/R, LC-16E1-B/W/R,
LC-20GH1, LC-15SX7, and LC-13SX7.
*2 Sponsored by the Japan Packaging Institute.
*3 Asia Star 2006 Awards sponsored by the Asian Packaging
Federation, and the 2006 World Star Competition sponsored by
the World Packaging Organisation.
Assessing the Clear Focus on the Environment
Throughout the Lifetime of the AQUOS
The product that epitomizes Sharp’s Super Green Products
is the AQUOS LCD TV, a product that can be regarded as
the symbol of Sharp’s attitude toward environmentally
conscious design.
As a TV befitting the century of the environment, the
AQUOS is imbued with environmentally conscious design
throughout. Sharp has endowed the AQUOS with a refined
level of performance that flows from LCD TV technology.
Compared to CRT TVs, LCD TVs save energy with lower
power consumption and save resources with a thinner
profile and lighter weight. The AQUOS also boasts long
service life with a backlight lasting approximately 60,000
hours.* Plus, Sharp uses green materials wherever possible,
as illustrated above.
Easily collapsible cardboard
packing box used for
AQUOS models 20V inches
and smaller*1 developed in
collaboration with Oji
Chiyoda Container Co., Ltd.
This box can be folded
down to less than 30 cm
square without the need of
tools such as box cutters,
and can easily be disposed of from the home as recyclable
material together with other recyclable waste such as old
newspapers.
Received the Minister of Economy, Trade and Industry Prize,
the top award, in the 2006 Japan Packaging Contest*2 and
also received awards in worldwide packaging contests.*3
Kikuko Tatsumi
Executive Director and
Chairman
Environment Committee
Nippon Association of
Consumer Specialists
Judge for the 3rd Eco
Products Awards
The detailed, environmentally conscious design of
the AQUOS is the reason it received the Award of
Excellence at the Eco Products Awards. This
design took into consideration the 3Rs: it reduces
the amount of resources used with its thin-profile
and lightweight design, uses recycled materials,
and adopts components that can be dismantled
without the need to manually undo fasteners at the
time of disposal. Consideration for the environment
is clear throughout the life of the product, including
choosing integrated manufacturing to reduce
transportation impacts, energy efficiency during
use, and the long service life of its backlight. Above
all, the advertising that publicized the AQUOS had
an extremely large impact on the public. I give the
Kameyama Plant ads high marks for informing the
public of the importance of environmental
awareness when manufacturing a product.
Keep Making TVs that Are No. 1
in Environmental Performance
I am constantly aware that the AQUOS,
having the top market share among LCD TVs
in Japan, should be the leader in terms of
environmental performance. Clearly, AQUOS
is the flagship of all Sharp’s environmentally
conscious products. We vitally need to stress
quality, cost, and consistent availability as we
fully incorporate the latest in environmental
technologies.
Hirokazu Matsumoto
Manager
Engineering Department II
LCD Digital Systems Division I
Audio-Visual Systems Group
Sharp Corporation
New AQUOS TVs Are Born Out of Used Ones
Demand for flat-panel TVs is growing rapidly,
and production of AQUOS is increasing. When
you think ahead and realize that these
products will be recycled when their service
life is over, the recyclability of used parts and
materials becomes an important issue that we
must do something about now. The AQUOS
cabinets are outstanding in that they can be
recycled into cabinets for new AQUOS sets.
Yasuhiko Utsumi
Assistant Manager
Green Product Development
and Promotion Department
Environmental Protection Group
Sharp Corporation
Environmental and Social Report 2007
14
Kameyama Plant (Kameyama City, Mie Prefecture, Japan;
LCD TVs and large LCD panels)
Mie Plant (Taki-gun, Mie Prefecture; small and medium LCD panels)
SMF (France; office equipment)
Hiroshima Plant (Higashi-Hiroshima City, Hiroshima Prefecture,
Japan; telecommunications equipment)
Nara Plant (Yamatokoriyama City, Nara Prefecture, Japan;
information equipment and electronic devices)
Yao Plant (Yao City, Osaka Prefecture, Japan; home appliances)
3
Reducing Negative Environmental Impacts in Production Facilities
Raising the Level of Environmental Consciousness
at Plants Worldwide, Moving to Green Factories
that Contribute to the Community
Working Toward Green Factories
The Birth of the Super Green Factory
In fiscal 1995, Sharp began the process of acquiring ISO
14001 environmental management system certification for
its production facilities around the world. It also launched a
campaign to systematically reduce negative environmental
impacts at all plants in accordance with the PDCA (Plan,
Do, Check, Act) quality control cycle. In September 1995,
the Hiroshima Plant became the first to acquire certification,
and by June 1997, all nine production facilities in Japan at
that time had been certified. Internationally, SUKM* in the
UK led the way in November 1995, and certification was
complete at all 22 overseas plants by fiscal 2004.
Sharp jumped to the next stage in its efforts to push ahead
with the conversion to Green Factories following the
guidelines with the construction of the Kameyama Plant, a
Super Green Factory that became operational in January
2004. Sharp established a policy at the time the Kameyama
Plant was constructed that the environment was to be given
priority consideration from the very earliest planning stages.
The basic management policy announced in January 2004
defined “becoming an environmentally advanced company”
as a medium-term corporate objective, and the Super
Green Strategy intended to achieve this goal was launched.
The Kameyama Plant and the AQUOS LCD TVs produced
there are, along with solar power systems, the flagships of
Sharp as an environmentally advanced company, and form
the core of Sharp’s Super Green Strategy. To clearly
demonstrate corporate management’s shift toward the
environment, superior environmental performance was
demanded of the Kameyama Plant and from the AQUOS.
Beginning in fiscal 2002, the Sharp Environmental
Management System (S-EMS) was formulated, adding 49
unique Sharp control points to supplement those specified
by ISO standards. As of fiscal 2004, S-EMS had been
introduced to all plants in Japan, and its introduction in
overseas production facilities is now underway.
Meanwhile, in tandem with such actions, Sharp formulated
its Green Factory Guidelines in fiscal 1999 following its
3G-1R strategy to provide guidance in turning production
plants into Green Factories, and introduced those
guidelines to all production facilities in Japan. In fiscal 2001,
they were introduced simultaneously to all plants abroad,
and Sharp began full-fledged efforts to reduce
environmental impacts by setting a goal to upgrade all
plants worldwide to Green Factories.
* SUKM: Sharp Manufacturing Company of U.K. Manufactures microwave
ovens and photovoltaic modules.
SMF: Sharp Manufacturing France S.A.
SOCC: Sharp Office Equipments (Changshu) Co., Ltd.
SRC: Sharp-Roxy Corporation (M) Sdn. Bhd.
15
Environmental and Social Report 2007
Mie Prefecture, the location of the Kameyama Plant, is
highly aware of environmental protection. Prior to the
construction of the Mie Plant (in Taki-cho), which became
operational in October 1995, an environmental assessment
was conducted over a three-year period by academic
experts and concerned parties from the area. The results
led to the introduction of an advanced environmental
protection system at the plant, including 100% recycling of
process wastewater and zero discharge to landfill. The
know-how and experience gained in this process were
combined with knowledge gleaned from other production
facilities and applied to the design of the Kameyama Plant.
Toward a Better Tomorrow…
To achieve SGF status, SOCC steadily implemented a
series of environmental protection measures across the
entire company. Specifically, SOCC placed priority on
reducing the amount of waste it generated, introduced
energy-efficient equipment, made effective use of water
resources, and implemented safety measures inside the
plant. These activities have been commended by
government officials as well. SGF certification is serving
as a source of encouragement for SOCC to keep up its
environmental protection efforts.
SOCC Environmental Management Team (General Affairs Department)
Front row, from left: Gu Jian, General Manager; Zhu Yan,
Environment Synthesis Group; Qu Jian Ming, Manager,
Environment Synthesis Group
Back row, from left: Shao Li Jun, Assistant Manager, Equipment &
Establishment Group; Pan Xue Jun, Equipment & Establishment
Group; Wu Dong, Manager, Equipment & Establishment Group; He
Wei, Manager, General Affairs Group
SOCC (China; office equipment)
Aiming to Become an Even More Advanced SGF
SRC has incorporated concern for the environment in its
business culture that has evolved over the course of its
31-year history. To achieve SGF status, SRC returned to basics,
and engaged in a variety of efforts to increase environmental
awareness among all its employees. These approaches
included not only reducing the environmental impact of the
plant, but also volunteer activities in public spaces and
environmental classes in schools. SRC will continue to work
toward becoming an even more advanced SGF.
SRC Environmental Management Team
Front row, from left: C.L. Lim, Manager, General Affairs; C.K. Choo,
Manager, Human Resources Development Center; Syed Sofi,
Manager, Personnel; Mohd Ali Bakar, Assistant Manager,
Occupational Safety & Health Administration
Back row, from left: Johari B. Jamaludin, Senior Officer, General
Affairs; Jolyn J.L. Teoh, Officer, General Affairs; S.L. Teh, Senior
Officer, Quality; Azhar B. Abas, Senior Officer, General Affairs;
Suchaad A.L. Vi Lai, Senior Officer, General Affairs
SRC (Malaysia; audio-visual equipment)
All Plants to Be Green Factories by
the End of Fiscal 2007
Assessment and certification criteria for Super Green
Factories, which demand the greatest possible reduction in
negative environmental impacts, were established in fiscal
2003 in conjunction with the construction of the Kameyama
Plant, and certification criteria for Green Factories were
established in fiscal 2004 based on them. At the same time,
Sharp made it a priority in line with the Super Green Strategy
to upgrade all ten plants under Sharp Corporation ownership
to Super Green Factories by fiscal 2007, as well as to
upgrade all domestic and overseas plants to at least the
Green Factory level.
Following the Kameyama Plant in fiscal 2003 came the Mie
Plant in fiscal 2004, and in the following year, fiscal 2005,
SMF* in France was certified as the third Super Green Factory
and the first outside of Japan.
The Kameyama Plant and the Mie Plant are both the very
latest type of LCD production facilities. They meet the
certification criteria by taking full advantage of the latest
environmental protection technologies provided by expert
advice. In contrast, SMF, established 17 years ago, gained
certification due to the strong determination of its top
executives who supported employees’ small-group activities
to raise environmental consciousness, and who deployed
detailed policy measures.
Sharp will continue to reduce the negative environmental
impact of its plants and strive to achieve sustainable
manufacturing. By enhancing interactions with the community
and continuing to provide the region with new value, Sharp’s
intention is to transform its production sites into plants whose
existence is indispensable to the community and whose
presence is a source of local pride.
Protecting the Regional Environment Goes
Hand-in-Hand with Corporate Site Development
Hiroshi Kinoshita
Director
Department of Environment
and Forestry
Kameyama City, Japan
Our city’s environmental policies have made great
strides thanks to the decision by Sharp to locate its
Kameyama Plant here. The signing of a strict
environmental protection agreement with the
community and the foresight of Sharp’s corporate
philosophy regarding environmental protection
throughout the entire plant has led to a new
dimension in the environmental policies of the city
administration. Good products are born out of the
strong environmental consciousness of a company,
and the trust of the people in their local government
is earned through environmentally conscious
policies. What I desire is to pass on an environment
that the next generation can take pride in.
The results at SMF had a tremendous influence on other
plants. In fiscal 2006, a total of five plants achieved Super
Green Factory status: the Hiroshima, Nara, and Yao Plants in
Japan, and SOCC* (China) and SRC* (Malaysia) abroad.
By fiscal 2006, 32 out of 39 production facilities worldwide
had achieved Green Factory status, and five out of ten Sharp
Corporation plants have gained Super Green Factory status.
Information on
website
■ Kameyama Plant
■ Green Factories
Floating Photovoltaic Power System on
a Reservoir Adjacent to the Kameyama Plant
Sharp constructed this project jointly with Cenergy Co. (Chubu Electric Power
Group) and Kameyama City. This 200-kW photovoltaic power system floating on
a reservoir generates electricity, and also by covering approximately 30% of the
water’s surface it blocks sunlight, thereby preventing degradation of the water
quality by inhibiting the growth of algae. Rainwater that accumulates in the pond
is effectively used as air-conditioning cooling water for the plant.
(Joint research project with the New Energy and Industrial Technology Development
Organization [NEDO], an independent administrative agency of the Japanese government)
Environmental and Social Report 2007
16
Special Focus 1
The Customer Assistance
Center—Working for Greater
Customer Satisfaction and
Improved Product Quality
1
2
As products increasingly become digital and
multifunctional, questions from customers are on the rise.
These questions hold clues about how products can be
improved and refined.
To make the best use of the valuable information
gathered from customer inquiries, Sharp has revamped
the organization and system at its Customer Assistance
Center in Japan and changed the way it coordinates with
business divisions.
3
New Organization and Mechanisms
to Accomplish Three CS Missions
The mission of Sharp’s Customer Assistance Center is to
provide customer satisfaction (CS) in the following three
areas.
1) CS provided directly based on the quality of
inquiry response
Each day, Sharp’s Customer Assistance Center handles
approximately 10,000 customer inquiries. Originally, Japan
was divided into two geographic service areas, east and
west, with the West Japan Center located in Yao (Osaka
Prefecture) and the East Japan Center in Makuhari (Chiba
Prefecture). However, individual employees of the Centers,
called “agents,”* needed to be well versed in all products,
and problems arose in acquiring this broad-based
knowledge.
Accordingly, beginning in April 2006, the system was
gradually reorganized to eliminate the geographic areas and
instead handle inquiries by product category. An automated
voice menu system was used to direct customer inquiries,
and the East Japan Center, which is located close to the
business divisions responsible for audio-visual products
such as LCD TVs, was assigned AV products. The West
Japan Center, located close to the business divisions
responsible for household appliances such as refrigerators,
was assigned white goods, as well as personal computers
and facsimiles which are produced in Yamatokoriyama
(Nara Prefecture) nearby. Narrowing the distance between
the Centers and the business divisions made it easier to
develop in-depth product knowledge through study
sessions that featured hands-on experience using actual
products.
17
Environmental and Social Report 2007
2) CS provided through quality service and prompt
repairs
Sharp introduced Diagnostic Interview techniques as a
support tool to enable agents to better manage how
customers receive after-sales service. This system
diagnoses problems by asking the customer a series of
questions that gradually narrow in focus. Once the problem
is clarified, employees of Sharp-Engineering Corporation,
the service company for the Sharp Group, specify what to
repair and identify needed parts in cooperation with Sharp
Corporation parts centers, making repair possible on the
same or next day.
3) CS provided by products that reflect customer
comments
The Customer Assistance Center meets regularly with each
business division to share information and ideas. These
informal meetings allow the voice of customers to be
reflected in products, and represent on-going efforts to
improve products as well as their instruction manuals using
information gathered by the Customer Assistance Center.
Members of development teams from the business
divisions, as well as agents from the Customer Assistance
Center participate, and the persons in charge decide on
strategies for improvement on the spot. There have been
numerous cases where these sessions resulted in
improvements, such as making the Superheated Steam
Oven more compact to fit smaller spaces.
* Agent: A staff member with the double role of representing Sharp, as
well as the customer, by making known the latter’s opinions to
the company.
事業部A
事業部B
事業部C
事業部D
事業部E
【主な話題】相談内容に含まれるキーワード(単語）の係り受け
事業部F
事業部G
事業部H
5
1 Agents use two screens (a data entry screen and a product information screen) for
quick, reliable support.
2 Agent training emphasizes hands-on experience gained by actually using the
product. This group is studying how to use the Superheated Steam Oven.
3 Regular meetings between the Customer Assistance Center and business divisions
are invaluable for product improvement.
4 A large 65V-inch LCD monitor is used in the Customer Assistance Center to display
4
the status of incoming calls on all lines and the disposition of calls handled in real
time.
5 Customer Opinion Portal website. Customer comments are entered in a database the
day after they are received. Data can be retrieved using a variety of search
parameters, including model name and the nature of the customer contact.
In addition, all information received by the Customer
Assistance Center (with the exception of personal
information) is entered into a database, and a new
Customer Opinion Portal website has been set up to
enable searching or browsing over a corporate intranet.
Information gathered from the approximately 10,000
customer inquiries each day can be accessed by
individuals responsible for product planning and design as
well as quality control. It is used to validate product
improvements and verify that the product remains
convenient and easy to use. The previous system was
completely revamped, with the revised system going into
operation in January 2007, and it is currently being
continuously upgraded.
In May 2006, Sharp inaugurated a management system for
analyzing customer inquiries as soon as a new product
enters the market. At that time, an employee from a division
responsible for technology, quality, and service is assigned
to the Customer Assistance Center to analyze the data and
implement quick response.
System Designed to Empower
Agents to the Greatest Extent
Possible
To compile all the information obtained from customers and
use it effectively requires a wealth of product knowledge
and information processing abilities on the part of the
agents, who are the point of contact with customers.
Sharp’s policy is to ensure that a certain amount of time
during the work hours of each agent is allocated for
training, using an in-house qualification & certification
system.
In fiscal 2007 Sharp added senior-level tests to the
entry-level tests already in use. The new tests are intended
to boost the agents’ skill levels and motivation, with the
results being reflected in the agents’ job evaluations and
benefits.
To improve customer satisfaction in the future, Sharp will
work to improve the quality of the response of the
Customer Assistance Center and to manufacture products
that make full use of customer comments.
Words from a Person in Charge
Fostering a Genuine Sense of Concern and
In-Depth Product Knowledge
For agents at the Customer Assistance Center, the most
important things are being able to grasp what the customer is
trying to say and understanding what the customer wants. A
genuine sense of concern and thoughtful attention are needed
here. In the agents’ training, we endeavor to impart
knowledge that will be of immediate use when the agent is
handling an actual call, and we also incorporate hands-on
learning using actual products.
Customers ask questions such as
how to bake matsutake
mushrooms in the Superheated
Steam Oven. Agents write up
their own manuals, incorporating
such specific information to help
them deal with a variety of
inquiries.
Kazuko Inagawa
Manager
West Japan Center
Customer Assistance Center
CS Promotion Group
Sharp Corporation
Environmental and Social Report 2007
18
Special Focus 2
Developing CSR Activities at
All Sales Bases Throughout
Japan with the Goal of
Becoming Rooted in the
Local Community
Sharp established the CSR Promotion Department within
the Domestic Sales and Marketing Group to promote
business activities that emphasize the basic principles of
“customer first” and ethical and legal compliance.
Sharp’s sales bases are working to fulfill the company’s
promised role in society by spreading the CSR mindset to
sales staff all over Japan and promoting activities that
contribute to the community where each base is located.
Building a Mechanism to
Spread the CSR Mindset to All
Sales Bases
Sharp’s sales and service bases throughout Japan have
direct contact not only with customers, but also with
business partners, and consequently, all bases put into
practice business activities that emphasize the basic
principles of “always put the customer first” and ethical and
legal compliance. In April 2004, Sharp established the CSR
Promotion Department under the Domestic Sales and
Marketing Group that holds overall responsibility for product
sales to promote CSR efforts within sales divisions.
Sharp regards spreading the CSR mindset to individual
employees working at sales bases all over Japan to be an
important issue. In addition to conventional instructor-led
training, Sharp began broadcasting domestic sales CSR
seminars in fiscal 2004 to all its sales and service bases in
Japan via satellite. These seminars select themes related to
compliance or conduct under CSR relevant to sales and
service—for example, “Compliance Rules for Sales Under
the Antimonopoly Act”—and deliver a visual presentation of
about 15 minutes on the topic. Broadcasting to all sales
bases in Japan and with all employees viewing at the same
time ensures that awareness of pressing themes is shared
by everyone. In fiscal 2006, Sharp held such CSR seminars
six times, and since the program’s inception, seminars have
been given a total of more than 30 times.
At business locations shared by a number of affiliated sales
and service companies, Sharp holds morning meetings in
which managers from all companies gather at the
beginning of each week to exchange information. Since
fiscal 2006, the Head Office has provided training materials
on CSR and compliance issues, and launched mini training
sessions in which leaders of the morning meetings play the
19
Environmental and Social Report 2007
CSR Promotion
Sales Base C
Department within
the Domestic Sales
and Marketing Group Sales Base A Sales Base B
1
2
3
role of lecturer/teacher. The aim is to improve knowledge
and insight into compliance and CSR.
In addition, Sharp has instituted an online self-auditing
system. Sales and service managers assess how well the
employees are putting the material learned in the seminars
into practice in their sales activities. The results are
analyzed quantitatively and qualitatively, and reflected in
new policies and mechanisms to ensure compliance and
CSR.
Thinking Hard About the
Community—Expanding the Circle
of CSR Activities Through
Social Action Programs
As the entity closest to members of the community, Sharp’s
sales bases want to play a role in the community. That is
why at least once every six months, each base undertakes
some activity so as to become rooted in the community.
The Domestic Sales and Marketing Group supports these
activities by disseminating information and providing
solutions to problems.
The community environment surrounding sales bases
varies with each location, and so individual bases at their
own initiative develop social action programs to match the
character of the community. The size of the sales base also
varies according to the region, but even bases with a small
number of personnel where it is difficult to mount activities
single-handedly can take a proactive approach by
cooperating with community associations, inviting the
families of employees to participate, and similar such
actions.
In fiscal 2006, to expand the circle of CSR, Sharp asked
sales personnel at dealers to participate in activities. The
1 Sharp broadcasts domestic sales CSR
2
3
4
5
4
6
5
7
8
7
seminars to all its sales bases in Japan via
satellite
Beautification campaign for public park (Sendai
Building) in cooperation with business partners
Crime prevention security patrol (Koto Building)
Beautification campaign for mountain trail on
Iizuna-yama (Nagano Building)
Beautification campaign for Kairakuen Park
(Mito Building)
Neighborhood litter cleanup in Tokyo
(Tokyo Chuo Building)
Flower planting along Cosmos Road
(Utsunomiya Building)
Beach cleanup at Momochi-hama
(Fukuoka Building)
6
Yamanashi Building began a joint program with dealers to
visit welfare facilities for the aged and help elderly persons
who were having trouble operating consumer electronics.
The Sendai Building gained the cooperation of personnel
from business partners, mainly staff from Sharp-affiliated
dealers, and held a cleanup campaign for Tsutsuji-ga-oka
Park. This activity sparked a great deal of interest in
community action programs, as evidenced by comments
from participants such as “It deepened my understanding
of CSR,” and “I would like to participate in more activities…”
By continuing such programs, Sharp is ensuring greater
cooperation from members of the community. For example,
a blood donation campaign held at the Koto Building
8
(Tokyo) resulted in the participation of individuals from
community associations and neighboring businesses with
at least 50 volunteer donors for three years in a row,
anchoring this blood drive as a CSR activity rooted in the
community.
In fiscal 2006, community-based social action programs
were held 636 times at sales bases throughout Japan, with
a total of 14,078 participants. In the future, Sharp plans to
strengthen its efforts along the entire supply chain,
including business partners and subcontractor companies
to further widen the circle of CSR activities.
Words from a Stakeholder
Words from a Person in Charge
Looking Forward to More
Social Contributions in the Future
Fulfilling CSR in a Way Unique to
Sales Bases
Every year, over 100 members of our
group, also known as Gomi-Gen (“reduce
garbage”), participate in a cleanup
campaign held on Momochi-hama Beach
near Fukuoka City. Each year, I see many
people from Sharp also participating, but I
was surprised when I heard that they were
coming from Hakata Ward which, even
though it’s inside the city limits of
Fukuoka, is a long way away. I was
certainly impressed at how Sharp truly is
an environmentally advanced company. I
look forward to their on-going
community-based social contributions in
the future.
The basic role of sales and service
departments is to fulfill their responsibility
to society by offering products and
service that satisfy customers. But in
addition to these, Sharp is taking steps to
make CSR a new role for each sales base.
For example, each sales base establishes
a theme unique to each area and carries
out environmental and community action
programs accordingly. Through these
activities, Sharp is working to establish
sales bases that exist in harmony with the
local community and to strengthen CSR
awareness at sales bases nationwide.
Masahiro Shibasaki
Chairman
Momochi-hama
School District
Garbage Reduction/
Recycling Promotion
Council
Yoshihide Sakai
Department General
Manager
CSR Promotion
Department
Domestic Sales and
Marketing Group
Sharp Corporation
Environmental and Social Report 2007
20
Special Focus 3
Sharp and Weathercasters
Launch Environmental
Education for Elementary
School Students in Japan
In cooperation with the Weathercaster Network (WCN), a
nonprofit educational organization of weather forecasters in the
Japanese media, Sharp has been holding environmental
education classes for elementary school students since
October 2006 to help them learn about global warming issues,
as well as the importance of solar energy and recycling.
Sharp solicited applications from schools around the country to
participate, and provided a platform to encourage increasing
numbers of children to think about the environment.
Fostering a Mindset to Do What
One Can for the Environment in
Everyday Life
Since 2004, the Weathercaster Network (WCN), a nonprofit
educational organization of weather forecasters in Japanese
TV and radio, has been providing educational programs on
weather disaster prevention and global warming, targeting
schools and civic groups across Japan. Meanwhile, Sharp
began environmental education with recycling as its theme
when it launched its home appliance recycling business in
2001. Sharp also developed its Solar Academy in 2004, a
traveling program to teach the mechanisms and features of
photovoltaic power generation.
The two parties met by chance in December 2005, at a
symposium at the Eco Products 2005 trade fair held at the
Tokyo Big Sight exhibition center and found many common
21
1
affinities. A shared sense of mission became the motivating
force for their partnership. The two groups began
collaborative activities in elementary school environmental
education in October 2006.
In their presentations, Sharp and WCN explore two themes:
“global warming and new energy (solar power)” as well as
“global warming and recycling.” A member of WCN who is
a weather expert explains familiar changes in weather
patterns, using experiments and fun talk. In the second half
of the class, a presenter from Sharp introduces
photovoltaic power generation and recycling through
experiments. Lastly, eco-friendly lifestyles are reviewed, and
the students are urged to adopt them in their own homes.
Both presentations push the three key elements that form
the basic principles of environmental education: 1) teach in
a scientific manner, 2) use experiments to give students a
base for learning, and 3) foster the mindset to practice
what they have learned.
Words from a Teacher
Words from a Weathercaster
An Opportunity to Think About the
Global Environment
Interesting Experiments that Exceed
Our Expectations
In the environmental education classes,
children were able to learn in detail about
the current state of the Earth. And by
thinking about what they themselves
could do, they were able to take up
eco-friendly lifestyle habits, such as
turning off unnecessary lighting and
shutting off dripping faucets.
What I felt was interesting about holding
joint classes with the people from Sharp
were their experiments. They far
exceeded our expectations, and the
children also found them extremely
intriguing. I myself would like to adopt
Sharp’s teaching methods.
Environmental and Social Report 2007
Tsuyoshi Ohga
Teacher
Tsukishima No. 1
Elementary School
Chuo Ward, Tokyo
Nobuyuki Hirai
Representative
Weathercaster Network
6
4
1 Class led by deputy representative, Ryoko
2
Fujimori, of the Weathercaster Network
2 Experiment in generating electricity from
sunlight
3 Comments by children on their experience in
the class
4 Eco Navigator explains global environmental
issues
5 Experiment showing how an increase in CO2
causes the Earth to warm
6 Children take up the challenge of an
environmental quiz
3
The program schedule allowed for the participation of 50
schools throughout the year from October 2006 through
March 2007, targeting fourth grade elementary students
and older. When the two groups solicited schools wishing
to participate, approximately 100 schools submitted
applications. The schools’ interest in classroom
environmental education came through loud and clear.
Following the classes, Sharp and WCN received more than
400 letters from teachers and children during the six-month
period. Both groups sensed a tremendous response in the
straightforward tone of the letters: “Hearing how I might be
making the environment worse made me think that I, too,
have to do something,” and “I’m going to talk to my
mother about not throwing away so much garbage,” and
“I’m going to carry a wrapping cloth or a shopping bag
when I run errands.”
5
Increasing Opportunities for
Environmental Education and Enhancing
Educational Activities Abroad
Sharp wants to communicate to as many children as
possible the urgency of environmental issues and would like
them to adopt eco-friendly lifestyles. Accordingly, in fiscal
2007, Sharp will be significantly increasing the number of
schools offering environmental education classes. Sharp
will also be increasing the number of full-time lecturers from
the Environmental Protection Group from four to eight, as
well as increasing the number of Eco Navigator facilitators
selected from employees at sales and service bases around
the country from 50 to 110. Plans call for environmental
education programs to be presented at 500 schools
annually in cooperation with WCN.
Words from a Weathercaster
Words from a Weathercaster
Striving to Be a Fun Instructor
High Living Standards Need
Not Harm Our Earth
To get the children to understand weather
anomalies and global warming, you first
have to become friendly with them. That’s
why I do things like play quiz games and
call them by nicknames. There’s a sense
of fulfillment when the children are able to
have fun. I’m aiming to be a quick, sharp
presenter.
The global warming of recent years
increases abnormal weather events and
is affecting the survival of living things.
We can send the message that a life of
abundance need not place a burden on
the Earth. Together with the people from
Sharp, I will do my utmost to build a
recycling-oriented, sustainable society,
and to spread the message of the global
environment.
Ryoko Fujimori
Deputy Representative
Weathercaster Network
Tadayuki Iwaya
Director
Weathercaster Network
Environmental and Social Report 2007
22
Special Focus 3
1
3
4
1 2 An Eco Navigator and children do experiments on
recycling using magnetism to separate metals
3 Presentation about recycling and resource issues
4 SRC (Malaysia) has been holding classes for junior
high school girls in cooperation with the Kedah State
Branch of the Girl Guide Association of Malaysia*
since fiscal 2005
2
* The Girl Guide Association of Malaysia, a member of the
World Association of Girl Guides and Girl Scouts, was
established in 1916 as an organization to provide
educational activities and opportunities for girls outside the
home and school.
Words from an Eco Navigator
Eco Navigators are involved in sales and service activities,
but they are also the key persons in promoting CSR
activities at each base or office. These committed
individuals are taking on community-based social action
programs as a new role, and are confronting this new
challenge with a sense of mission. They also receive
training to get a solid grounding on environmental issues
and how to relate to children when conducting the classes.
In April 2007, Sharp set up an Internet bulletin board to
support classroom instruction, as well as learning
development and exchanges among schools, with
follow-up exchanges of opinions, research announcements,
and collaborative research. Participating schools were
issued IDs and passwords to support environmental
education on a continuing basis.
In the future, Sharp will focus on environmental education
internationally. So far, environmental education programs
have been conducted at overseas bases in the UK,
Indonesia, and the Philippines. In fiscal 2005, SRC*,
Sharp’s manufacturing subsidiary in Malaysia, also
launched an environmental education program in junior high
schools.
Sharp plans to expand and enhance education programs
internationally, and envisions developing them in a
cross-sectional manner at all bases.
The company is contributing to the building of a sustainable
society through sustainable manufacturing while helping
more children learn about environmentally conscious
lifestyles.
* SRC: Sharp-Roxy Corporation (M) Sdn. Bhd. Manufactures audio-visual
equipment.
Making Promises with Children to Start with
Things Near at Hand
In the class, the children promised to
start with whatever they can in everyday
life to protect the environment. As a
manufacturing company, contributing to
society through better lifestyle offerings
and service activities is our mission, but
I am proud to be able to contribute to
the local community through such
environmental education activities
beyond just products.
Yasunori Suwa
Manager
Japan Sales Division IV
Sharp Electronics
Marketing Corporation
Words from Persons in Charge
I’m Known as Mr. Recycling
When a member of WCN introduces me
as “Mr. Recycling,” the students greet
me with expectant looks. We have fun
doing experiments and playing quiz
games, and I think this can serve as a
motivation to get the children to think
about the environment.
Takeo Nakai
Junior Manager
Environmental Education and
Outreach Department
Environmental Protection Group
Sharp Corporation
Surprised by the Children’s Ideas
In the class on solar cells, students came
up with ideas like, “If we stuck them on
railroad tracks, we could run the trains
…” and “How about embedding them in
the pavement?” Sometimes I think their
ideas could be a possibility that we can
study with our engineers. I hope these
classes will provide hints to the children
Chiaki Fukada
on future school and career options.
Junior Manager
Environmental Education
and Outreach Department
Environmental Protection
Group, Sharp Corporation
23
Environmental and Social Report 2007
Sharp and the Environment
In Pursuit of Becoming an Environmentally
Advanced Corporate Group
Advanced Measures for Environmental Conservation as
Management Policy ..................................................................... 25
Advancing Super Green Management ........................................ 27
Environmental Accounting ....................................................... 29
How Business Activities Relate to the Environment ............... 30
Developing Super Green Technologies ....................................... 31
Creating Super Green Products and Devices ............................. 33
Building Super Green Factories .................................................. 35
Curbing 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
Photovoltaic power system floating on a reservoir adjacent to the Kameyama Plant. For details, see page 16.
Environmental and Social Report 2007
24
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Advanced Measures for Environmental
Conservation as Management Policy
In accordance with environmental guidelines established in line with Sharp’s Basic Environmental Philosophy, the Sharp Group
Charter of Corporate Behavior, and the Sharp Code of Conduct, Sharp is pursuing environmental conservation in all aspects of
its business activities. Since fiscal 2004, when the medium-term corporate objective of becoming an environmentally advanced
company was first set, Sharp has been promoting the Super Green Strategy to achieve its corporate vision and to establish
sustainable manufacturing systems.
Basic Environmental Philosophy
Medium-Term Corporate
Objective: Environmentally
Advanced Company
Since fiscal 2004, the medium-term corporate
objective of becoming an environmentally
advanced company has been Sharp’s basic
management policy. At the same time, it set forth
its corporate vision as “Sharp’s energy-creating
and energy-saving products equalize Sharp’s
greenhouse gas emissions” and is promoting its
Super Green Strategy to accelerate the
company’s environmental performance.
Creating an Environmentally Conscious Company with Sincerity and Creativity
The Sharp Group Charter of Corporate Behavior
The Sharp Code of Conduct
Contribution to Conservation of
the Global Environment
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.
1. To Conserve the Environment
2. To Develop Environmentally
Conscious Products and Services,
and Conduct Our Business
Operations in an Environmentally
Conscious Manner
Main Objectives and Fiscal
2006 Achievements
In fiscal 2006, Sharp’s third year of
pursuing the medium-term corporate
objective of becoming an environmentally
advanced company, Sharp began
harvesting the results of various measures
taken.
In regard to environmental technologies,
Sharp was able to smoothly expand its
closed-loop plastic material recycling
(CMR), and also started using CMR-ready
material in AQUOS LCD TV cabinets as a
strategic move for the future. Moreover,
Sharp developed a new quick-drying,
plant-based resin paint and expanded the
range of its applications.
Sharp’s products and devices exceeded
all targets for the percentage of sales
achieved by all four kinds of Green
Products and Devices. While Sharp
products and devices have already
achieved a considerably high degree of
environmental performance, in the future
Sharp will study how to set targets
following the assessment indices of the
Comprehensive Product Environmental
Evaluation System, which provides LCA
(life cycle assessment) know-how.
Overseas production sites have dramatically reduced their impact on the
environment. The goal to upgrade all
group factories to Green Factories by the
end of fiscal 2007 has accelerated efforts
at overseas sites to reduce environmental
impact. Sharp has already converted all
domestic plants into Green Factories or
higher.
Other significant results include the
establishment of the Integrated Management System, the start-up of a second
plant for Kansai Recycling Systems Co.,
Ltd., and the start of environmental
education programs at elementary schools.
At Sharp, systems to support an
environmentally advanced company—one
that contributes to the creation of a
sustainable society—are gradually being
established around its manufacturing core.
25
Environmental and Social Report 2007
Stages
Themes
Major Objectives
Implement Sharp Environmental Management System (S-EMS)
Environmental
Sustainability
Management
Acquire ISO 14001 certification
Environmental management system
Build Integrated Management System (IMS)*1
Conduct cross audits
Promote closed-loop plastic material recycling
Establish 3R technologies
Establish LCD TV recycling technology
Planning
and
Design
Increase Green Seal Products’ share of net sales in Japan*2
Develop Green Products
Increase Super Green Products’ share of net sales in Japan
Increase Green Devices’ share of net sales*3
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)
Curb greenhouse gas emissions
Reduce CO2 emissions (per production unit)
Reduce and recycle waste
Reduce amount of waste discharged (per production unit)
Reduce risk from harmful chemicals
Reduce discharge risk of chemicals under high-priority control
Logistics
Reduce distribution-related CO2 emissions
Change modes of transport
Recycling
Recycle used products
Enhance and improve recycling systems
Manufacturing
*1 The Integrated Management System is a system that simultaneously reduces environmental impact and improves quality.
*2 The sales ratio of Green Seal Products includes sales of Super Green Products.
*3 The sales ratio of Green Devices includes sales of Super Green Devices.
*4 Amount of waste, etc. discharged = amount of waste discharged + amount of valuable resources
*5 Per adjusted 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}
Products and Devices
Technologies
Greenhouse gas emissions
from Sharp’s worldwide
business activities
CO2 emission reductions
through customer use
of Sharp solar cells and
energy-saving products
Sharp aims to reduce greenhouse gas emissions from its worldwide business
activities to such an extent that, by fiscal 2010, the quantity of greenhouse
gases emitted that year will equal the quantity of greenhouse gases avoided
that same year through customer use of both Sharp solar cells sold during
the preceding 20 years and of Sharp energy-saving products.
Develop unique environmental
technologies that contribute to
environmental conservation
SGR Super Green
Recycling
Recycle used products to
promote reuse of resources
Create products and
devices with high
environmental performance
SGP/D
SGT
SGR
SGM Super Green
Management
SGF
SGF Super Green
Factories
Develop environmentally
conscious factories that
can be trusted by local
communities
SGM
Enhance environmental
sustainability management
For details, see page 11.
Self Evaluation
: Achieved more than targeted
Fiscal 2006 Objectives
: Achieved as targeted
Fiscal 2006 Achievements
: Achieved more than 80% of initial target
SelfEvaluation
: Achieved less than 80% of initial target
Fiscal 2007 Objectives
Fiscal 2009 Objectives
Complete introduction of S-EMS at all
domestic and overseas production sites
Introduce S-EMS at 10 overseas production sites
Introduced S-EMS at 12 overseas production sites
Introduce S-EMS at 22 overseas production sites
Complete certification at all overseas non-production
consolidated subsidiaries (total 21)
Unattained at one subsidiary
Complete certification at all overseas
non-production consolidated subsidiaries
Build IMS at 2 domestic production sites
Built IMS at 2 domestic production sites
Build IMS at 6 domestic production sites in total
Build IMS at 6 domestic and 11 overseas
production sites in total
Conduct at 3 overseas production sites
Conducted at 3 overseas production sites
Conduct at 10 overseas production sites in total
Conduct among overseas production
sites producing same items
Use 600 tons of recycled plastic in new products
Used approx. 620 tons
Use 800 tons
Use 1,000 tons (fiscal 2008 objective)
Conduct verification tests on technology to
recover indium from LCD panels
Verified recovery of indium from LCD panels
Conduct experimental study of LCD TV
recycling technology
Study application of LCD TV recycling
technology
Green Seal products account for 85% of net sales
Approx. 93%
90% or more
90% or more
Super Green Products account for 30% of net sales
Approx. 49%
50%
60%
Green Devices account for 65% of net sales
Approx. 73%
75%
85%
Super Green Devices account for 10% of net sales
Approx. 12%
15%
20%
Japan:
Of 10 Sharp Corporation production sites,
upgrade 5 to SGF and 5 to GF
Of 7 subsidiaries/affiliates, upgrade 5 to GF
Japan:
Upgraded 5 Sharp Corporation production
sites to SGF and 5 to GF, and 7 subsidiaries/
affiliates to GF
Promote new SGF measures
Overseas:
Of 22 production sites, upgrade 1 to SGF and 14 to GF
Overseas:
Upgraded 3 production sites to SGF and 12 to GF
Upgrade all Sharp Corporation production
sites to SGF
Upgrade all other domestic and overseas
production sites (subsidiaries/affiliates) to GF
or higher
Japan:
Product sites: Reduce by 2% from previous fiscal year (every fiscal year)
Device sites: Reduce by 5% from previous fiscal year (every fiscal year)
Japan:
Product sites: Reduced by approx. 12% from previous fiscal year
Device sites: Increased by approx. 1% from previous fiscal year
Japan:
Japan:
Product sites: Reduce by 2% from previous fiscal year (every fiscal year) Reduce by 28% compared to fiscal 1990 per
Device sites: Reduce by 5% from previous fiscal year (every fiscal year) adjusted production unit*5 (fiscal 2010 objective)
Overseas:
Reduce by 2% from previous fiscal year at all production
sites (every fiscal year)
Overseas:
Reduced by approx. 14% from previous fiscal year at
all production sites
Overseas:
Reduce by 2% from previous fiscal year at all production sites (every fiscal year)
Japan:
Reduce amount of waste discharged by 3% from
previous fiscal year (every fiscal year)
Japan:
Increased by approx. 11% from previous fiscal year
Japan:
Reduce amount of waste discharged by 3% from previous fiscal year (every fiscal year)
Overseas:
Reduce amount of waste, etc. discharged*4 by 2% from
previous fiscal year (every fiscal year)
Overseas:
Reduced by approx. 19% 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 at Sharp Corporation
production sites by 55% or more compared to fiscal 2003
Reduced by approx. 58% compared to fiscal 2003
Reduce by 60% compared to fiscal 2003
Reduce by 60% or more compared to
fiscal 2003 (fiscal 2008 objective)
Domestic railway cargo transport: 1,050 containers/month
Reduce 4,400 t-CO2 of CO2 emissions in Japan
1,263 containers/month
Approx. 5,327 t-CO2
1,300 containers/month
1,600 containers/month
Boost domestic recycling of used home appliances
Improved recycling rate
(up 3 points over previous fiscal year in
four home appliances in total)
Respond to increased number of items requiring recycling
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● Sharp Group Charter of Corporate Behavior (full text) ● Sharp Code of Conduct (full text)
Environmental and Social Report 2007
26
Advanced Measures for Environmental Conservation as Management Policy
Super Green Strategy: Aiming to Become an
Corporate Vision: Sharp’s Energy-Creating
and Energy-Saving Products Equalize Sharp’s Environmentally Advanced Company
Greenhouse Gas Emissions
SGP/D Super Green
SGT Super Green
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Advancing Super Green Management
The Environmental Protection Group plays the key role in implementing Sharp’s advanced environmental measures.
Under a company-wide organization, the Group is continuously strengthening environmental sustainability
management and raising employee environmental awareness with measures such as the creation of an Integrated
Management System that is incorporated into a strategic management system, and the implementation of
environmental education programs.
Objectives for Fiscal 2006
Achievements for Fiscal 2006
Objectives for Fiscal 2007
Objectives for Fiscal 2009
• Complete introduction of S-EMS at all
domestic and overseas production sites
• Introduce S-EMS at 10 overseas production sites
• Introduced S-EMS at 12 overseas
production sites
• Introduce S-EMS at 22 overseas
production sites
• Complete ISO 14001 certification at all overseas
non-production consolidated subsidiaries (total 21)
• Unattained at one subsidiary
• Complete certification at all overseas
non-production consolidated subsidiaries
• Build Integrated Management System at 2 domestic
production sites
• Built Integrated Management System
at 2 domestic production sites
• Build Integrated Management System at 6
domestic production sites in total
• Build Integrated Management System at 6
domestic and 11 overseas production sites in total
• Conduct cross audits at 3 overseas production sites
• Conducted cross audits at 3
overseas production sites
• Conduct cross audits at 10 overseas
production sites in total
• Conduct cross audits among overseas
production sites producing same items
Environmental Sustainability
Management Centered on
the Environmental
Protection Group
The Environmental Protection Group,
which plays the key role in Sharp’s
environmental sustainability management, holds General Global Environmental Conferences. Overseen by the
director in charge of environmental
affairs, the conferences set guidelines,
strategies, and objectives for all Sharp
Group companies. The Group also hosts
Company-Wide GP (Green Product)/GF
(Green Factory) Conferences for sites to
discuss specific environmental measures
concerning products and plants.
At the Group’s regional environmental
conferences held in four world regions,
participants gain a deeper understanding of environmental guidelines,
strategies and objectives, as well as
discuss specific themes and case
reports from each site.
The Environmental Protection Group and
departments in charge of environmental
matters at all sites work closely together
to inaugurate committees and the like to
identify problems and formulate
solutions as special needs arise.
──
Building an Integrated Management System that
Is Incorporated into the eS-SEM Strategic Management System
Sharp introduced its original strategic
management system (eS-SEM*1) using
the balanced scorecard*2 method in
fiscal 2004. The eS-SEM system breaks
down company-wide organizational
goals to the level of the individual in
order to clarify the objectives of
individual employees and specify their
levels of achievement. Thus individual
employees are evaluated for how well
they have contributed to corporate
management. The system helps
employees make their objectives more
practical and to obtain results that are in
line with company-wide strategies.
Separate from this, Sharp has for a
number of years now had a proprietary
environmental management system
(S-EMS*3) aimed at reinforcing
environmental legal compliance and
improving environmental activities. The
S-EMS adds 49 original additional
criteria to ISO 14001, with mandatory
reports on progress to be submitted
regularly to the Environmental Protection
Group.
By incorporating the Integrated
Management System into eS-SEM,
Sharp expects to achieve two benefits.
First, Sharp expects performance
improvements and risk reductions in the
form of reduced greenhouse gas
emissions from business activities, as
well as fewer defective goods, these
being in line with Sharp’s management
objectives. Second, by refocusing
separate S-EMS and QMS programs
into activities aimed at achieving the
same company-wide management
objectives, Sharp is able to put its
management resources where it needs
them most.
In fiscal 2006, two production sites, the
Hiroshima Plant and the Yao Plant,
adopted the Integrated Management
System. Sharp plans to introduce the
Integrated Management System to more
domestic production sites and bring the
total to six sites in fiscal 2007.
■ Sharp Group’s environmental sustainability management
Management Strategy Conference
Overseen by the President
General Global Environmental Conference
Previously, Sharp had three separate
in-house systems—eS-SEM, S-EMS,
and QMS (Quality Management System).
But for increased accuracy and
efficiency, the S-EMS and QMS were
merged into the Integrated Management
System, which was integrated into, and
operated as part of, the eS-SEM. (See
page 28 diagram, Structure of
Integrated Management System.)
• Company-Wide Special Safety
Management Committee
*1 eS-SEM: e-Sharp Strategic Enterprise Management
*2 Balanced scorecard: Management method developed
by Drs. R. Kaplan and D. Norton of Harvard University
in the early 1990s.
*3 S-EMS: Sharp Environmental Management System
Overseen by the director in charge of environmental affairs
Company-Wide GP/GF Conference
Pan-American
Environmental
Conference
Pan-European
Environmental
Conference
Asia
Environmental
Conference
China
Environmental
Conference
Environmental
Conferences at each
subsidiary
Environmental
Conferences at each
subsidiary
Environmental
Conferences at each
subsidiary
Environmental
Conferences at each
subsidiary
Overseen by Environmental Protection Group
General Manager
• Company-Wide Product VOC
Measures Workgroup
• REACH Measures Project Team
• Chemical Substances Control
Committee
• PRTR Measures Workgroup
• Site VOC Measures Workgroup
• Risk Communicator Liaison
Committee
Environmental Conferences/
Committees at All Domestic Sites (Companies)
27
Environmental and Social Report 2007
2007 Asia Environmental Conference in Thailand
■ Structure of Integrated Management System
Partial optimization
Quality QMS
eS-SEM
Environment S-EMS
Total optimization
eS-SEM
Integrated Management
System covering quality
and environmental items
QMS/S-EMS
Conducting Cross Audits
Sharp’s overseas production sites have
conducted internal environmental audits
that are limited to each base, although
cross audits had already been carried
out at sites in Japan. In fiscal 2006, with
the aim of further improving the
capability of internal auditors and the
level of audits at overseas sites, Sharp
introduced cross audits, in which
internal auditors audit each other’s
bases.
In fiscal 2006, auditors at three sites in
China with advanced knowledge of ISO
14001 and environment-related facilities
conducted cross audits at each other’s
bases. The results of the audits were
reported to the management of each
site and a system has been created for
taking improvement measures. The
introduction of cross audits has thus
enabled Chinese sites to strengthen
their individual environmental efforts and
to establish a system for conducting
highly accurate, high-quality audits by
improving the level of auditors and by
sharing know-how.
In future, Sharp will conduct similar
cross audits at the remaining three sites
in China, as well as sites in Southeast
Asia, North America, and Europe.
Stepping Up Environmental
Education and Training
Advancing Super Green Management
With the goal of improved efficiency through efforts linked to management,
the system combines EMS and QMS.
Objectives for S-EMS and QMS used to
be separate (partial optimization); for
example, reduction of waste was an
objective for S-EMS while reduction of
failure rates was an objective for QMS.
The Integrated Management System,
however, established objectives
centered on business management
plans for reducing environmental impact
and for improving quality simultaneously
(total optimization); for example, an
objective to reduce defective products
can solve two problems: excess waste
and product failure. This means the
Integrated Management System enables
Sharp to achieve wide-ranging results.
This system is also expected to bring
other benefits such as reducing
documentation, consolidating work, and
shortening examination periods.
■ Environmental education and
training system
Sharp offers systematic environmental
education and training in three courses.
1) Master course: Designed to foster
leaders who serve as the pillars of
environmental sustainability management owing to their acquisition of
comprehensive knowledge in
technology, products, and production.
2) Expert course: Designed to help
employees learn more about
environmental legislative control and
special skills.
3) General course: Designed to help
employees acquire basic environmental knowledge and improve awareness
of the environment.
In fiscal 2006, in order to foster leaders
who have expertise and know-how in
specific environmental fields, Sharp
added a specialist class to the Master
course. The specialist class deals with
themes closely linked to work
(environmental facilities, energy savings,
waste disposal, management of
chemical substances, and operational
safety). The programs consist of lectures
provided by in-house and outside
lecturers, on-site practical training, and
group discussion. The specialist classes
were offered at six sites in fiscal 2006.
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
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
Taking apart an air conditioner as part of
recycling training
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● ISO 14001-certified sites (companies) ● Environmental education
Environmental and Social Report 2007
28
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Environmental Accounting
Sharp introduced environmental accounting in fiscal 1999 to provide a quantitative assessment of the costs and benefit of its environmental
conservation activities, and has applied the results to environmental sustainability management. Beginning in fiscal 2005, Sharp adopted a
disclosure format that follows the Environmental Accounting Guidelines 2005 published by the Japanese Ministry of the Environment.
Environmental conservation costs
Economic benefit
Investment in environmental conservation increased by 30% compared
to the previous fiscal year to approximately 3.1 billion yen. Environmental
conservation expenditures rose to approximately 15.3 billion yen, up
30% over the previous fiscal year, in conjunction with costs for nextgeneration fuel cells and R&D on environmentally conscious production
technologies, as well as waste disposal fees and costs of pollution
control measures associated with expanded production.
Actual benefit was approximately 4.3 billion yen (up 70% compared
to the previous fiscal year) reflecting energy-saving measures and
the recovery and reuse of wastewater. Actual benefit exceeded the
costs for energy-saving measures and costs to reduce greenhouse
gas emissions necessary to install photovoltaic power and
cogeneration systems at the Kameyama Plant.
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
Planning and Design
(R&D)
• R&D on photovoltaic
power systems
• Promote closed-loop
recycling of plastic materials
• R&D on basic environmental
technologies
• R&D on plant-based resin
paint
Estimated
Benefit
–
–
Estimated
Benefit
Physical Effects
Promote environmental sustainability management
10
(0.5)
1,509
(1,337)
Master
Expert
General
Number of employees
with environmental
education
Manufacturing
Minimize and
recycle waste
(recycle resources)
• Reduce waste discharge
and recycle waste into
valuable resources
• Recycle water
Prevent
pollution
(prevent pollution)
• Install scrubbers
• Introduce exhaust gas
treatment systems
2,005
(1,006)
–
35,129
(21,894)
(Unit: ¥ million)
Green Seal products’ share of net sales
92.5%
–
Super Green products’ share of net sales
48.6%
–
1,322 GWh
30,411
Total amount of power generated by
photovoltaic power systems
CO2 emissions reduced by photovoltaic
power systems
Electric power saved from energy-saving
products
CO2 emissions reduced by energy-saving
products
562,000 t-CO2
731
169 GWh
3,893
72,000 t-CO2
94
Greenhouse gas emissions reduced by controlling electricity and fuel consumption
1,027
(391)
1,568
(1,610)
2,018
(1,340)
1,121
(2,852)
•
28
5,044
(3,435)
2,288
(1,096)
–
89,000 t-CO2
116
PFC emissions reduced
773,000 GWPt
1,005
Waste recycled
Recycled and reused water
1,908
(1,719)
5,150
(4,289)
–
–
14
31
34
(Unit: ¥ million)
CO2 emissions reduced
15
•
Waste recycled or sent for appropriate disposal
135
(263)
9
16
153,000 tons
–
16,983 km3
–
∼
• Introduce scrubbers for PFCs
• Install photovoltaic power
systems
• Introduce energy-saving
equipment
–
27
–
–
–
101
430
440
Supply environmentally conscious products
Reduce greenhouse
gas emissions
(global environmental
conservation)
See
page(s)
∼
• Operation of environmental
management system
• Promote environmental
sustainability management
• Environmental education activities
Actual
Benefit
Environmental Conservation Effects
∼
Environmental
Sustainability
Management
(management activities)
Economic
Benefit
(Unit: ¥ million)
35
Observe environmental laws and regulations
Prevent air/water pollution and noise/vibration
Promote risk management
Chemical substances properly managed and their discharge reduced
Reduce risk of soil contamination
38
Collection, recycling, and proper disposal of used products
22 tons
–
2,685 tons
–
37,967 tons
–
Used PCs recycled
Recycling/Logistics
(upstream/downstream)
• Promote collection,
recycling, and proper
disposal of used products
Used copiers recycled
0
(0)
12
(71)
24
(54)
7
(15)
Used home appliances (4 categories) recycled
Environmental burden during distribution reduced
CO2 emissions reduced
5,327 t-CO2
7
312
–
Total 28,678
–
Number of low-pollution vehicles introduced
Social Responsibility
• Expand social contribution
activities
Total
29
(Unit: ¥ million)
Environmental social contributions
0
(0)
49
(60)
–
3,080
(2,374)
15,337
(11,808)
4,330
(2,490)
–
36,257
(24,761)
Number of employees who attended SGC
activities 39
•
40
53
•
54
Note: Figures in parentheses below entries represent actual values from the previous
fiscal year.
Explanation of terminology
Sites covered
Environmental conservation costs
Overhead costs, personnel expenses, and investment associated with environmental conservation activities, in addition to attendant
depreciation.
Economic benefit
Contributions to society and to the company, which result from environmental conservation activities, expressed in monetary units.
Actual benefit:
Economic effects that can be assessed directly in monetary terms, such as cost savings from energy-saving efforts
and use of recycled water, as well as profits from the sale of valuable resources.
Estimated benefit: Sharp Corporation uses the following terms to convert the economic effects of reduced greenhouse gas emissions
and electricity savings from the use of photovoltaic power generation and energy-saving products into equivalent
monetary amounts.
(1) Reduced greenhouse gas emissions converted into equivalent monetary amounts: 1,300 yen/t-CO2.
(2) Electricity savings converted into equivalent monetary amounts: Unit cost of electricity: 23 yen/kWh.
A total of 14 sites (and companies) in Japan fall within the
scope of environmental accounting: Sharp Corporation
sites at Tochigi, Yao, Hiroshima, Nara, Katsuragi,
Fukuyama, Mie, Tenri, Mihara and Kameyama, the
business premises of Sharp’s head office and Tanabe
office, Sharp Manufacturing Systems Corporation and
Sharp Niigata Electronics Corporation
Environmental and Social Report 2007
Period covered
April 1, 2006 through March 31, 2007
Referenced guidelines
Environmental Accounting Guidelines 2005 published by
the Ministry of the Environment, Japan
Advancing Super Green Management
Advancing Super Green Management
How Business Activities Relate to the Environment
Sharp uses numerical values to accurately assess the relationship between its business activities and the environment, and uses them
to promote environmental sustainability management. By making use of these current values at all stages of business activities to
create proposals for policy measures and to analyze and evaluate the results, Sharp is aiming to effectively reduce the impact it has on
the environment.
INPUT
Energy consumption 28,130 TJ *1
Electricity
2,442 million kWh
Japan
2,129 million kWh
Overseas 313 million kWh
LPG
14,782 tons
Japan
12,973 tons
Overseas 1,809 tons
City gas
73.428 million m3
Japan
70.561 million m3
Overseas 2.867 million m3
Heavy oil, kerosene,
gas oil, gasoline
10,889 kl
Japan
8,556 kl
Overseas 2,333 kl
OUTPUT
Flow of Sharp
Group business
activities
Technological
development,
planning, design
Materials
procurement
CO2 emissions
1.379 million t-CO2
Japan
1,106,000 t-CO2
Overseas 273,000 t-CO2
PFC emissions
Japan
351,000 GWPt-CO2
SOx emissions
Japan 22.3 tons
NOx emissions
Japan 122.3 tons
Drainage
Total
12.590 million m3
Japan
10.537 million m3
Overseas 2.053 million m3
Japan 3.73 million GWPt-CO2*2
PFCs purchased
Chemical substances
(PRTR) handled
Japan 8,975 tons
Water consumed
16.448 million m3
Japan 14.176 million m3
Overseas 2.272 million m3
COD
Japan 20.6 tons
(chemical oxygen demand)
Nitrogen discharged
Japan 114.3 tons
Phosphorous discharged Japan 2.0 tons
Recycled into new products, reused as new parts, closed-loop material recycling, etc.
Manufacture
Other
uses
Packaging materials
Japan 23,415 tons
Final landfill disposal
Resources consumed
Japan and overseas
635,000 tons*3
12.4 tons
Chemical substances (PRTR) Japan Released
Transferred 189.9 tons
released and transferred
Japan 16.0 tons
CO2 emissions
Japan 33,466 t-CO2*4
Volume of transport
Japan 156,511
thousand ton-km*4
Logistics
Energy consumption
Japan
Vehicle fuel
12,766 kl*4
Product use
Energy consumption
26,492 TJ*5
Electricity
2,695 million kWh
CO2 reductions
192,000 t-CO2 *6
(451 million kWh)
CO2 emissions
1.15 million t-CO2 *5
Weight of which that
was not recycled into
new products or
materials, or reused
Japan 11,254 tons
(four home appliances,
PCs, copiers)
RECYCLE
Material recycling
Amount of used home appliances
(4 kinds) recycled into new home
appliances (4 kinds)
Japan
37,967 tons
TVs
9,231 tons
Air conditioners
6,740 tons
Refrigerators
12,360 tons
Washing machines 9,636 tons
Amount of recycled copiers
Japan 2,685 tons
Amount of recycled PCs
Japan 22 tons
Recycling
Amount of closed-loop material
recycling of plastic
Japan 620 tons*7
*1 TJ (terajoule) = 1012 Joules
*5 Estimate of annual energy used and amount of CO2 emitted by products in the 14
*2 GWP (global warming potential) is a measure of how much a given amount of greenhouse
major categories shipped in fiscal 2006. Calculation based on each product’s
gas will contribute to global warming, expressed relative to an equivalent mass of CO2.
energy consumption rate.
*3 Total weight of products in the 15 major categories shipped in fiscal 2006 (estimate), plus *6 Amount of power generated (kWh) annually by Sharp solar cells shipped in fiscal
waste generated from production sites.
2006, plus CO2 emissions reduction (t-CO2).
*7 For details, see page 31.
*4 Preliminary figures
Environmental and Social Report 2007
30
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Developing Super Green Technologies
To realize the corporate vision of “Sharp’s energy-creating and energy-saving products equalize Sharp’s
greenhouse gas emissions,” the development of superior environmental technologies is an essential factor in the
performance of products and devices, together with the reduction of environmental impacts during production.
That is why Sharp is developing critically important environmental technologies as “one-of-a-kind” environmental
technologies in line with its strategy for company-wide technology development.
Objectives for Fiscal 2006
Achievements for Fiscal 2006
Objectives for Fiscal 2007
Objectives for Fiscal 2009
• Promote closed-loop plastic material recycling;
use 600 tons of recycled plastic in new products
• Approx. 620 tons of recycled plastic
used in new products
• Use 800 tons of recycled plastic in
new products
• Use 1,000 tons of recycled plastic in new
products (fiscal 2008 objective)
• Conduct verification tests on technology to recover
indium from LCD panels
• Verified the recovery of indium from
LCD panels
• Conduct experimental study of LCD TV
recycling technology
• Study the application of LCD TV recycling
technology
Developing One-of-a-Kind
Environmental Technologies
■ One-of-a-kind technological development fields that give birth to
Super Green Technologies
ming prevention technolo
al war
gies
Glob
Sharp conducts research and development in four areas of environmental
technology: reduction of CO2 emissions,
effective use of resources, elimination of
harmful substances, and promotion of
health and cleanliness.
Sharp recognizes the most important
technologies in these areas as one-of-akind environmental technologies—key
technologies for achieving global
environmental conservation—and
develops them in compliance with a
company-wide development strategy.
These technologies enhance environmental performance of products and devices,
reduce environmental impact at plants,
and facilitate recycling. Unique technologies, evolving from these developments,
are what Sharp calls Super Green
Technologies.
Reduction of CO2 emissions
(create energy, save energy)
One-of-a-Kind
Environmental
Technologies
Elimination
of harmful
substances
Health and
cleanliness
Effective use of resources
(reduce, reuse, recycle)
s
Env
ironm
logie
ental conservation techno
■ Closed-loop plastic material recycling flow
Product use
(customer)
Closed-Loop Plastic Material
Recycling Technology
Product
design
Used parts
Refrigerator,
washing machine
Large-scale plastic sorting line at Kansai Recycling Systems
31
Environmental and Social Report 2007
Pelletization
Melting/
extrusion
Mixing with
additives
Cleaning
Plastic parts
recovery
Placing into
crusher
■ Closed-loop plastic material recycling target and results in Japan
Refrigerator
*1 Four home appliances: Air conditioners, TVs,
refrigerators, and washing machines.
Material evaluation, evaluation of remaining lifetime, moldability
(flowability) evaluation, physical properties evaluation, review and
determine formulation to improve properties
Molding and assembly
of plastic parts
Washing machine
In fiscal 2006, Sharp recycled approximately 620 tons of plastic, thanks in part to
the development of equipment for
recovering spin drivers from washing
machines and technology for recycling
polystyrene plastic. Sharp plans to use
1,000 tons of recycled plastic in fiscal 2008.
Used consumer electronics
New consumer electronics
TV
In fiscal 2001, Sharp and Kansai Recycling
Systems Co., Ltd. jointly put into practical
use a technology for the closed-loop
recycling of plastic. Plastic recovered from
four kinds of home appliances*1 is used to
manufacture new units, and the recovered
material can be recycled repeatedly. As of
fiscal 2006, a total of 1,950 tons of
recycled plastic had been reused.
Disassembly
Material
type
Technologies
• Adjust properties
• Improve lifetime
Washing
tub
Polypro• Adjust moldability
pylene
• Adjust properties
• Improve lifetime
Recycled
as
Washing
tubs
Refrigerators
parts
Spin driver/ Polypro- • Adjust moldability
pylene
• Improve lifetime
balancer
Rear
cabinet
Refrigerators
parts
• Sort nonincombustible PP Air conditioner
parts
Polypro- • Improve lifetime
pylene
• Improve heat
Refrigerators
resistance
parts
Quantity of recycled material used (ton/year)
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
FY 2007
(target)
40
80
190
180
180
200
200
–
–
–
80
80
80
80
–
–
50
65
140
185
180
–
–
10
20
10
10
–
–
–
15
40
20
15
–
Polypro- • Adjust physical
properties
pylene
• Improve lifetime
• Sort materials
Shelf plate Polyphysical
styrene • Adjust
properties
• Improve lifetime
Refrigerators
parts
–
–
–
35
90
120
150
Refrigerator
and TV parts
–
–
5
–
–
10
100
Other
parts
Refrigerator
and washing
machine
parts
–
–
–
–
–
–
90
Total
40
80
270
420
520
620
800
Vegetable
case
Polypro- • Separate and recover
highly pure PP
pylene
• Adjust properties
• Improve lifetime
• Make foreign
substances invisible
It is used on the stands of AQUOS LCD
TVs*2 released since October 2006.
Sharp and Kansai Paint Co., Ltd. jointly
developed plant-based resin paint made
from corn, and Sharp applied it first to
the stands of AQUOS LCD TVs entering
the market in March 2006. Sharp thus
became the world’s first company to use
such paint for plastic parts of consumer
electronics.
AQUOS whose stand is painted with the new
quick-drying plant-based resin paint (starch paint)
*2 LC-65RX1W, 57RX1W,
52RX1W, 46RX1W, 42RX1W,
In fiscal 2006, Sharp and Kansai Paint
further improved this paint, successfully
developing one that dries in only half the
time and simplifies the painting process.
LC-52GX1W, 46GX1W,
52GX2W, 46GX2W
LC-65RX1W
■ Carbon cycle for plant-based resin paint
Modified starch
Plant-based resin paint
Painted onto parts
CO2
Incineration after
product disposal
Cornstarch
Technology to Recycle Indium
from Used LCD Panels
Developing Super Green Technologies
Development and Application of Plant-Based Resin Paint
In fiscal 2006, Sharp and Aqua Tech Co.
Ltd. jointly developed a proprietary
technique to recover and recycle the
rare metal indium from the transparent
electrodes*3 in LCD panels.
This new technique takes advantage of
the unique properties of this metal. LCD
panels are first crushed into glass cullet
(small chips). The indium on the surface
of glass cullet is then dissolved in an
acid solution. It is a simple process
using common chemicals that
eliminates the need for large energy
expenditures to create high temperatures or high pressure. Moreover, the
indium metal recovered is of high purity.
*3 The transparent electrode in an LCD is formed from a
conducting film deposited on one of the glass
substrates of the LCD. An electric charge is applied at
the required level to the liquid crystal material sealed
between the two glass substrates. This causes the
molecules of the liquid crystal to shift their orientation,
thereby controlling the passage of light through the
display. ITO (indium tin oxide) is widely used as the
material for transparent electrodes because of its high
conductive and light-transmitting properties.
■ How indium is recycled
Corn powder
Corn
CO2 absorbed through
photosynthesis
LCD panel
Technology for Using Plant-Based Plastic
With a technology for blending
plant-based plastic made from corn and
waste plastic (polypropylene) developed
jointly with Starlite Co., Ltd., Sharp
developed a technology for blending
plant-based plastic (polylactic acid) and
general plastic (polystyrene) in fiscal
2006. By adding durability to
plant-based plastic, it can withstand
closed-loop material recycling, reducing
the need for limited fossil-based
resources.
Sharp will conduct tests to assess the
commercial viability of using plastic
blends in products at the earliest
possible date.
Dissolution
Recovery
Resource recycling
General
plastic
Starch
(Raw materials:
corn, potatoes, etc.)
Glass cullet
Indium solution
■ Recycling of plant-based plastic
Polylactic acid
(PLA)
Crushing
Pellets
(a blend of PLA
and general plastic)
Indium hydroxide
Molded into
parts
Products
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● Environmental technologies
Environmental and Social Report 2007
32
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Creating Super Green Products and Devices
Sharp establishes increasingly higher objectives as it revises its guidelines every year in making ever more strict
assessment standards, all with the goal of continuously improving the environmental performance of products and
devices. As a result, in fiscal 2006 Sharp achieved its goals to increase the percentage of net sales accounted for
by Green Seal Products, Super Green Products, Green Devices, and Super Green Devices.
Objectives for Fiscal 2006
Objectives for Fiscal 2009
Achievements for Fiscal 2006
Objectives for Fiscal 2007
Green Seal Products account for 85% of net sales in Japan
Approx. 93%
90% or more
90% or more
Super Green Products account for 30% of net sales in Japan
Approx. 49%
50%
60%
Green Devices account for 65% of net sales
Approx. 73%
75%
85%
Super Green Devices account for 10% of net sales
Approx. 12%
15%
20%
Note: The sales ratios of Green Seal Products and Green Devices include both sales of Super Green Products and Super Green Devices.
Certification of Green Seal Products and Super Green
Products in Japan
Make All Products Green
Products
Sharp calls its environmentally
conscious products Green Products. It
formulated the Green Product
Guidelines in fiscal 1998, which define
development and design guidelines in
line with seven concepts, including
those of low power consumption and
safety. The guidelines are used at all
design and production sites in Japan
and overseas.
The first step in developing Green
Products is product planning and
designing. Sharp sets specific objectives
according to the Green Product
Standard Sheet, which is designed to
assess all aspects of environmental
consciousness. Secondly, in the trial
manufacture and mass production
stages, Sharp determines how well the
actual product has met its objectives.
Since fiscal 1998, Sharp has been
certifying products for Japan that offer a
particularly high level of environmental
performance as Green Seal Products. In
fiscal 2004, it began certifying Green
Seal Products with the highest possible
levels of environmental performance as
Super Green Products.
70 points or higher out of a total of 100
points in the Environmental
Performance Criteria. To receive Super
Green Product certification, products
must score 90 points or higher in the
Environmental Performance Criteria and
they must acquire certification for
Japanese environmental labels.
To receive Green Seal Product
certification, a product must satisfy at
least one item in the External Environmental Claim Standards and all four
required items in the Environmental
Performance Criteria, and must score
In fiscal 2006, Sharp surpassed its
goals for both Green Seal Products and
Super Green Products as a percentage
of total sales. In the coming years,
Sharp plans to raise these percentages
even higher.
■ Assessment and certification standards for Green Seal Products and Super Green
Products in Japan (fiscal 2006)
Category
Green Seal Product
Super Green Product
Level of
• Satisfies at least one item of the External
environmental
Environmental Claim Standards
consciousness
In fiscal 2006, Green Products had to
satisfy at least 90% or more of 44
assessment criteria, a goal that was met
by all of Sharp’s new products.
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
• 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
■ Sharp Green Product concept
Makes effective use of
resources
Designed for recyclability,
resource saving, etc.
20 points
At least 70 points
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.
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.
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.
All conditions under sections
and
At least 90 points
■ Four required items in the
Environmental Performance Criteria
in Japan (fiscal 2006)
Items
Recycle
Use recycled
materials
Long life
usability
Easy to
disassemble
33
Recyclable products
Choose materials that can be easily recycled or
reused in products, and label the type of material
used.
Products made from recycled materials
Use recycled plastic and reuse parts in making
products.
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 2007
Super
Green
Products
Green Seal
(Sharp’s own
environmental label)
Green Seal Products
that are extremely
environmentally
conscious
Improved
35 points
Other
Has environmental label
status, uses minimum
packaging materials, etc.
25 points
must be satisfied.
■ Sharp concept of
environmentally
conscious
products
Improved
Uses substitutes
for toxic chemicals
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)
Detail
Energy
saving
• Lower power consumption and
standby power consumption than
previous models
3R
• Easy separation and disassembly,
or is upgradeable
Safety
• Meets the RoHS directive
• Uses no substances prohibited under
Sharp standards
• Uses no Ni-Cd batteries
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)
Sharp calls its environmentally
conscious devices Green Devices. To
define guidelines for development and
design based on seven concepts, such
as low energy consumption and
recyclability, Sharp established the
Green Device Guidelines, which it began
applying in fiscal 2004. In fiscal 2005, it
began certifying Green Devices with the
highest possible levels of environmental
performance as Super Green Devices.
The development of Green Devices
begins at the planning and designing
stage, where every aspect of the
product’s environmental consciousness
is discussed. Sharp then sets specific
objectives based on the Green Device
Standard Sheet. Finally, in the trial
manufacture and mass production
stages, Sharp determines how well the
actual product has met its objectives.
in the industry or the first in the industry
in at least one item of the External
Environmental Claim Standards.
In fiscal 2006, both Green Devices and
Super Green Devices exceeded their
sales ratio targets. In the coming years,
Sharp plans to raise these figures still
higher.
■ Green Device concept
Green Devices must satisfy at least 90%
or more of all 20 assessment items (nine
of which are compulsory) listed in the
Environmental Performance Criteria.
Super Green Devices must satisfy at
least 95% or more of the 20 assessment
items (10 of which are compulsory)
listed in the Environmental Performance
Criteria. They must also either be No. 1
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
Control usage of chemical substances
contained in parts and materials and
use no 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
■ Green Seal Products External
Environmental Claim Standards
(fiscal 2006)
3R
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 closed-loop recycled materials
Safety
Green materials
• Abolishing use of halogen-based flame
retardants, substituting polyvinyl chloride
• Use of refrigerant with low global warming
potential
Eco Mark
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
Acquired Eco Mark
• Acquired Eco Mark authorized by
the Japan Environment Association
Others
Energy saving,
energy creating
Items
Original technology
• Environmentally conscious products using
industry-first or original Sharp technology
Information on website
http://sharp-world.com/corporate/eco/report2007/
Development of Worldwide
Comprehensive Product
Environmental Evaluation
System
Creating Super Green Products and Devices
Certification of Green Devices and Super Green Devices
In April 2006, Sharp began using the
Comprehensive Product Environmental
Evaluation System in all domestic
product and device groups. This system
combines Sharp’s accumulated
experience in developing and assessing
environmentally conscious products and
devices with its know-how of LCA (life
cycle assessment). It enables Sharp to
make the product development process
more efficient, place design knowledge
and development data under centralized
management, and standardize the LCA
method.
Sharp’s product development processes
are now carried out worldwide. The
company began introducing the
Comprehensive Product Environmental
Evaluation System to its overseas
development bases in March 2007. With
the system’s introduction, Sharp is able
to consolidate the management of
product environmental data to ensure
that all bases comply with environmental
regulations, and it can also facilitate the
spread of environmentally conscious
design. Sharp plans to have the system
in operation at all overseas development
bases within fiscal 2007.
Green Procurement
In fiscal 2000, Sharp established the
Green Procurement Guidelines and
began joint efforts with suppliers to
ensure that parts and materials are
environmentally conscious.
In fiscal 2003, Sharp formulated the
Survey Manual for Chemical
Substances in Parts and Materials and
investigated chemical substance
content as stipulated by the Japan
Green Procurement Survey Standardization Initiative (JGPSSI).*1 The company
also took measures toward eliminating
RoHS-designated*2 substances. It
successfully eliminated them in all
products for the European market by
the end of 2005 and in all new products
(except those for certain regions) by
March 31, 2006.
In fiscal 2006, in line with the Green
Procurement Guidelines and the Survey
Manual for Chemical Substances in
Parts and Materials, Sharp started an
online survey for Japan. For overseas
suppliers, Sharp has been giving
meetings to explain guidelines and plans
to have a similar system completed
before the end of fiscal 2007.
*1 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.
*2 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.
● Green Products ● Green Devices
● LCA data for major products ● Green Procurement Guidelines
Environmental and Social Report 2007
34
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Building Super Green Factories
Sharp is raising environmental awareness at its production sites all over the world. Using original standards to rank
a factory with high environmental consciousness as a Green Factory (GF), and one with extremely high
environmental consciousness as a Super Green Factory (SGF), Sharp plans to convert all domestic and overseas
Sharp Group production sites into Green Factories or higher by the end of fiscal 2007.
Objectives for Fiscal 2006
Achievements for Fiscal 2006
Objectives for Fiscal 2007
• Of 10 Sharp Corporation production sites in Japan,
upgrade 5 to SGF and 5 to GF
SGF
GF
5
5
All SGF
• Of 7 domestic production sites
(subsidiaries/affiliates), upgrade 5 to GF
GF
7
All GF or higher
• Of 22 overseas production sites
(subsidiaries/affiliates), upgrade 1 to SGF and
14 to GF
SGF
GF
3
12
All GF or higher
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
basic policies and operational know-how
for achieving Green Factory status have
been formulated in line with 10 concepts
in the Green Factory Guidelines. These
guidelines were introduced at all
domestic production sites from fiscal
1999 onward and at all overseas
production sites from fiscal 2001 onward.
Starting in fiscal 2003, as part of the
Green Factory effort, Sharp established
a system for Super Green Factories,
using an environmental impact
assessment approach. Factories are
assessed based on in-house standards
in order to satisfy the requirements of
third parties and earn the trust of local
communities.
Objectives for Fiscal 2009
Promote new SGF measures
Certification of Green Factories and Super Green Factories
Quantified environmental performance
criteria are used to assess and approve
a plant for certification. A plant must
score 70 or more points out of a
possible 100 in the assessment process
to earn Green Factory certification, while
scoring 90 or more points will result in
Super Green Factory certification.
Plans call for upgrading all Sharp
Corporation production sites in Japan to
Super Green Factories and all production sites in the Sharp Group to Green
Factories or higher by the end of fiscal
2007.
In fiscal 2006, three domestic bases and
two overseas bases achieved Super
Green Factory status, while a total of 10
bases in Japan and overseas earned
Green Factory certification.
■ Process required to achieve Super Green Factories
New factories
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.
■ Green Factory concept
Assessments based on 21 quantified environmental performance criteria
Minimize emission of greenhouse gases
Energy
Minimize energy consumption
Waste
Minimize discharge of waste
Resources
Minimize resource consumption
Chemical
substances
Minimize risk of environmental
pollution and accidents caused by
chemical substances
Atmosphere,
water, soil
Minimize environmental burden on the
atmosphere, water, and soil
Harmony
with nature
Endeavor to preserve nature both on
and off site
Harmony with
the community
Encourage harmony with the
local community
Environmental
consciousness
Foster high environmental awareness
among employees
Information
disclosure
90 points
or more
90 points or more
Disclose information on the environment
Super Green Factory
Super Green Factory
70 points
or more
Green Factory
■ Twenty-one quantified environmental performance criteria and
assessment weighting
Environmental performance criteria
Greenhouse
gases
Assessment
weighting
Reductions in Reductions in the
Appropriate
Reductions in the Monitoring, safety,
release of
greenhouse gas
disposal of
consumption of and information
chemical
emissions
industrial waste industrial water
disclosure
substances
• 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
30 points
• PRTR atmospheric
emissions
• PRTR water emissions
• Sulfoxide produced by
combustion
• Eliminate all noxious
odors
26 points
• Zero discharge to landfill • Use of rain condensation • Disaster and fire
• Confirmation of
water
prevention measures for
appropriate disposal
• Recovery of production
hazardous materials
• Recycle waste as
rinse water
• Special safety measures
valuable resources
• Adoption of central
monitoring measures
• Disclosure of
environment-related
information
14 points
9 points
21 points
(Total score: 100)
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● Green Factories ● Environmental data on Sharp production sites
35
Environmental and Social Report 2007
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Curbing Greenhouse Gas Emissions
Sharp is taking active measures to restrict greenhouse gas emissions resulting from its business activities. Through
the introduction of cogeneration systems and energy-saving equipment, the installation of photovoltaic power
systems, and the meticulous carrying out of energy-saving activities at plants and offices, Sharp is reducing CO2
emissions. And by installing scrubbers and using replacement gases with less global warming potential, Sharp is
also reducing greenhouse gas emissions such as PFCs.*1
Objectives for Fiscal 2006
Achievements for Fiscal 2006
Objectives for Every Fiscal Year Mid- to Long-Term Objectives
Building Super Green Factories / Curbing Greenhouse Gas Emissions
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
• Reduced by approx. 12% from previous fiscal year
• Increased by approx. 1% from previous fiscal year
• Reduced by approx. 14% from previous fiscal year
• Reduce by 2% from previous fiscal year
• Reduce by 5% from previous fiscal year
• Reduce by 2% from previous fiscal year
Fiscal 2010 objectives
CO2 emissions per adjusted production unit*3
• All domestic production sites: Reduce by
28% 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 utilizes an index referred to as “per production unit.”
*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 adjusted 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 Group Activities
Controlling CO2 Emissions at Domestic Production Sites
In fiscal 2006, the Sharp Group reduced
its greenhouse gas emissions per
production unit by 11% compared to the
previous fiscal year. Activities to reduce
overall emissions included the implementation of energy-saving measures, the
recycling of PFC gas, and the installation
of PFC scrubbers in Kameyama Plant No.
2 which started operation in August 2006.
But with production volume increasing,
the net result was a 12% total increase in
greenhouse gases over the previous
fiscal year. Sharp will continue to work to
reduce emissions.
CO2 emissions per production unit to
just a 1% rise, despite the large drop in
LCD panel prices.
Sharp’s company-wide efforts to save
energy and improve production efficiency
have produced results at domestic
production sites. CO2 emissions per
production unit have been reduced by
3% over the previous fiscal year.
Sharp will continue working aggressively
to reduce CO2 emissions by introducing
energy-saving equipment, fuel
conversion systems, and photovoltaic
power systems.
Product sites reduced their CO2
emissions per production unit by 12%.
At device sites, Sharp managed to keep
■ CO2 emissions per production unit by business category
for Sharp Corporation production sites in Japan
Greenhouse gas emissions (thousand t-CO2) Per production unit (t-CO2/100 million yen)
1,000
100
884
840
800
■ Sharp Group’s greenhouse gas emissions
per production unit
Greenhouse gas emissions (thousand t-CO2)
80
2,000
80
58.0
600
60
59.7
77.6
1,730
61.1
1,500
1,415
1,435
1,483
550
1,544
474
343
428
351
400
393
40
220
195
450
4.8
0
805
633
848
20
23
2002
5.2
4.1
3.7
24
2003
4.6
35
23
2004
36
2005
0
2006
(fiscal year)
1,106
500
2002
37.8
200
169
0
40
33.7
60
273
48.2
43.0
242
633
613
44.5
40.3
416
54.3
56.5
1,000
66.6
65.7
656
62.2
Per production unit (t-CO2/100 million yen)
690
2003
835
2004
959
20
CO2 emissions (products)
CO2 emissions (devices)
Emissions per production unit (devices)
Emissions per production unit (company-wide)
Emissions per production unit (products)
2005
2006
0
Starting in fiscal 2005, these figures are the total of CO2 emissions from all divisions
of production sites, excluding basic research. Within the previously calculated range,
fiscal 2005 CO2 emissions were 745 (thousand t-CO2) and emissions per production
unit were 41.5 (t-CO2/100 million yen).
(fiscal year)
CO2 emissions (Japan)
CO2 emissions (overseas)
PFC emissions
Emissions per production unit
Emissions per production unit is calculated from production-related emissions.
■ CO2 emissions per adjusted production unit for Sharp
Corporation production sites in Japan
1990
2005
2006
Emissions per adjusted production
unit (t-CO2/100 million yen)
Fiscal year
32.2
22.1
21.6
Fiscal 1990 comparison
100
69
67
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● Reductions in greenhouse gases ● Data on greenhouse gases
Environmental and Social Report 2007
36
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Minimizing and Recycling Waste
Sharp has been working to bring down its total amount of waste discharged*1 and to recycle waste as much as possible. As a
result, domestic production sites (including subsidiaries and affiliated companies) have achieved zero discharge to landfill*2 for
six 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.
Achievements for Fiscal 2006
Objectives for Fiscal 2006
Amount of waste discharged per production unit
• Reduce by 3% from previous fiscal year
Domestic production sites (including subsidiaries and affiliated companies):
Recycle waste into valuable resources
• Recycle 15% of waste into valuable resources*3
Objectives for Every Fiscal Year
Increased by approx. 11%
from previous fiscal year
Amount of waste discharged per
production unit
• Reduce by 3% from previous fiscal year
Approx. 16%
Overseas production sites (including 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. 19%
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 Six Years in a Row,
Overseas Sites Reduce Amount of Waste, etc. Discharged per Production Unit by Approx. 19%
In fiscal 2006, the amount of waste, etc.
discharged by the Sharp Group
increased by approximately 24% over
the previous fiscal year owing to
increases in production volume.
its waste reduction targets. However,
thanks to all-out efforts to recycle this
waste, the final landfill disposal rate was
less than 0.01%, giving Sharp zero
discharge to landfill for the sixth
consecutive year and raising to 16% the
amount recycled into valuable resources.
At domestic production sites (including
subsidiaries and affiliated companies),
the amount of waste discharged per
production unit increased by around
11%, preventing Sharp from achieving
■ Amount of waste, etc. discharged
by the Sharp Group
(thousand tons) Per production unit (ton/100 million yen)
210
180
5.8
197
5.8
6.1
35
159
150
120
136
32
90
60
104
6
5
33
126
162
Sharp also stepped up efforts to
upgrade more of its overseas production
Fiscal 2007 and beyond will see Sharp
continue its efforts to recycle waste and
recover valuable resources from waste
as the company cuts the amount it
discharges.
■ 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)
210
180
150
4
120
3
90
60
30
1
30
0
0
2004
2005
Overseas
0
2006 (fiscal year)
5.3
157
25
4.9
121
16
99
13
86
105
2004
132
2005
Waste discharged
Per production unit
Per production unit
Figures include non-production sites, Sharp Yonago Corporation
as of June 2005, and the Toyama Plant as of April 2006.
210
6
180
5
150
4
120
3
90
3
2
60
2
1
30
2006
0
Sharp Corporation carried out thorough
recovery and recycling of water,
particularly at the Kameyama and Mie
Plants. Water recovered and recycled at
domestic production sites accounted for
55% of all water used. The result was
that Sharp sites used about the same
amount of water in fiscal 2006, despite
a large increase in production volume.
Sharp will continue to focus on making
effective use of water.
Figures include subsidiaries and affiliated companies, Sharp Yonago
Corporation as of June 2005, and the Toyama Plant as of April 2006.
(million m3)
20
15
Environmental and Social Report 2007
6
5.2
5
4.3
4
3.4
30
32
2004
2005
Waste, etc. discharged
1
34
2006
0
(fiscal year)
Per production unit
■ Amount of water recycled at domestic and
overseas production sites, and recycling
rate at domestic production sites
16.0
15.0
2.0
0.3
0.3
2.0
16.4
0.3
17.3
2.2
15
14.0
12.1
10
12.7
13.7
(%)
100
20
13.9
0.08
0.05
50.5
0.04
75
55.2
10
50
48.5
5
0
5
2004
2005
Production
sites (overseas)
2006 (fiscal year)
Non-production sites
(Japan and overseas)
Figures include subsidiaries and affiliated companies, and
Sharp Yonago Corporation as of June 2005.
37
7
(million m3)
Production
sites (Japan)
Information on website
http://sharp-world.com/corporate/eco/report2007/
0
(fiscal year)
Valuable resources
■ Amount of water used by the Sharp Group
Recycling Water
(thousand tons) Per production unit (ton/100 million yen)
7
5.9
2
Japan
Per production unit (ton/100 million yen)
(thousand tons)
7
sites to Green Factories, achieving an
approximately 19% reduction over the
previous fiscal year in amount of waste,
etc. discharged per production unit.
● Waste reduction ● Data on waste
● Effective water usage ● Data on water usage
0
12.0
2004
Recycled water
(Japan)
13.9
17.2
2005
2006
Recycled water
(overseas)
25
0
(fiscal year)
Recycling rate
(Japan)
Figures include subsidiaries and affiliated companies, and
Sharp Yonago Corporation as of June 2005.
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 discharge 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 information on environmental risks and promotes good communication with local communities.
Achievements for Fiscal 2006
Objectives for Fiscal 2006
• Reduced by approx. 58%
compared to fiscal 2003
Objectives for Fiscal 2007
Objectives for Fiscal 2008
Minimizing and Recycling Waste / Effectively Managing Chemical Substances, Conducting Risk Management
Sharp Corporation production sites in Japan
• Reduce discharge risk*1 by 55% or
more compared to fiscal 2003
• Reduce by 60% 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
Based on the C-PA system*2 and the
process assessment system*3, Sharp
conducts rigorous preliminary audits to
determine the environmental, safety, and
health effects of new chemical
substances and handling equipment. In
fiscal 2006, Sharp Corporation
conducted operational safety audits at
three sites to prevent accidents and
reduce environmental impact.
Sharp has also introduced S-CMS*4 at
domestic production sites in order to
centrally manage the quantities of
chemical substances consumed and
discharged.
Sharp designates 460 chemical
substance groups (354 substance
groups covered by the PRTR*5 Law plus
106 additional substance groups
including hazardous air pollutants) as
high-priority management substances.
The company is working to reduce and
properly manage these substances and
VOCs.*6
*2 C-PA system: A system to conduct assessments on
the harmful effects of chemical substances to use.
*3 Process assessment system: A system to conduct
preliminary assessments on the safety of equipment
handling chemical substances.
*4 S-CMS: Sharp Chemical Management System
*5 PRTR: Pollutant Release and Transfer Register. A
system to collect and publicize data, such as the
amount of harmful chemicals handled and discharged.
*6 VOC: Volatile organic compounds
■ Destinations of PRTR-listed
chemical substances in Japan
Transfer to
sewers (0.03%)
Discharge to water
areas (0.10% )
Discharge into
atmosphere
(0.03%)
Transfer to waste
(2.08%)
Consumption
(0.46%)
Treatment
(10.73%)
Reducing Chemical
Substance Emissions and
Discharge Risks
Risk Communication and
Information Disclosure
Of the chemical substances covered by
the PRTR Law, the number of chemicals
handled in quantities greater than 500
kg in fiscal 2006 at all Sharp Corporation production sites in Japan amounted
to 17 substances or 8,975 tons (up 41%
over the previous fiscal year). Although
the use of PRTR chemicals increased
when production went up, emissions fell
by 12% to 12.4 tons from the previous
fiscal year by the introduction of
scrubbers to reduce VOCs.
Sharp regularly discloses environmental
risk information associated with
business activities by means of Sharp
Festivals and the publication of site
reports at each site. Such disclosure is
intended to promote mutual understanding and communication between Sharp,
neighboring residents, and the local
government. In fiscal 2006, 10 Sharp
Corporation sites publicly released a
total of 11 environmental information
reports.
Since fiscal 2004, in addition to the
reduction of chemical substance
emissions, 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 2006,
discharge risks were reduced around
58% over fiscal 2003.
A survey conducted in 1998 on soil and
groundwater identified chlorine solvent
pollution within Sharp Corporation’s
Nara, Yao, Tenri, and Katsuragi sites.
With the exception of Nara, all sites
have reduced contamination levels
below those of the environmental
standard via biotechnology. Sharp is
continuing purification at the Nara site in
order to reduce its contamination levels
below those of the environmental
standard as at the other three sites, and
regularly notifies local municipalities and
residents of the cleanup progress.
In fiscal 2006, Sharp emitted 286 tons
of VOCs, which is just 81% of the
amount emitted in the base year of fiscal
2000.
■ Chemical substances discharged in large amounts into the atmosphere and
water areas in Japan
Main chemical substances
Destination
Hydrogen fluoride & its
water-soluble salts
Water areas
2-Aminoethanol
Xylene
Phenol
Recycle (86.57%)
Proportion
(%)
Compared
to last year
(%)
Fiscal 2005
discharge
(kg)
9,175
73.9
94.4
9,722
1,743
14.1
88.3
1,975
694
5.6
119.2
582
332
2.7
87.8
378
1,3,5-Trimethylbenzene
303
2.4
38.5
788
Others
156
1.3
23.9
652
12,403
100.0
88.0
14,098
Total
Information on website
http://sharp-world.com/corporate/eco/report2007/
The
atmosphere
Fiscal 2006
discharge
(kg)
● Data on chemical substance management ● Data on the atmosphere and water quality
Environmental and Social Report 2007
38
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Environmentally Conscious Logistics and Packaging
With the enactment on April 1, 2006 of the Revised Law Concerning the Rational Use of Energy (Energy
Conservation Law) in Japan, the distribution sector must take further energy-saving measures. In cooperation with
shipping contractors, Sharp is working to reduce environmental impact by creating a system to accurately assess
environmental impact in distribution and by taking as many measures as possible to optimize transport methods
and load efficiency.
Objectives for Fiscal 2006
Change modes of transport
Domestic railway cargo transport
(container transport): 1,050 containers/month
Reduce 4,400 t-CO2 of CO2 emissions in Japan
Energy Conservation Law
Committee for Promoting
Energy Savings in Japan
Sharp established the Committee for
Compliance with the Energy Conservation Law as a Shipper in fiscal 2005. The
committee assesses environmental
impact in the areas of materials,
production, sales, parts*1, and waste
disposal, and works to strengthen
company-wide energy-saving measures
in distribution. In addition to changing
modes of transport and improving
transport efficiency, the committee is
expanding efforts in resource savings.
The amount of cargo transported by
Sharp Corporation totaled approximately
157 million ton-kilometers (the total of
weight by cargo category [t] x transport
distance [km]) in fiscal 2006. This puts
Sharp in the category of specific
shippers (shippers with large transport
volume) specified under the revised
Energy Conservation Law. To achieve a
1% or greater reduction of energy
consumption per production unit
annually, which is the obligation for
specific shippers under the law, Sharp
Corporation will further promote
energy-saving measures.
*1 Distribution of parts used for after-sales service, such as
repair and maintenance of products.
Achievements for Fiscal 2006
1,263 containers/month
Reduced approx. 5,327 t-CO2
of CO2 emissions
1,300 containers/month
Environmentally
Conscious Distribution
Worldwide
In the US, Sharp sales subsidiary SEC
participates in the SmartWay Transport
Program*2. In 2006, at its first awards
ceremony, the Environmental Protection
Agency honored SEC with the
program’s excellence award for superior
achievements in 10 categories, including
stopping engine idling and being strictly
punctual for collection and delivery times.
*2 SmartWay Transport Program: A joint effort by the US
Environmental Protection Agency and industry to
promote environmentally conscious shipping and
distribution.
■ Railway container shipments and
CO2 reduction in Japan
(Rail container units/month)
(t-CO2)
5,327
1,250
4,133
1,263
1,000
6,000
5,000
4,000
3,170
2,634
770
963
750
Chairperson:
Environmental Protection Group General Manager
250 311
1,000
0
0
2002 2003 2004 2005 2006
500 1,568
3,000
2,000
577
(fiscal year)
Rail container units
Corporate
Procurement
Group
(procurement
distribution
and production
distribution)
Global
Logistics
Center
(sales
distribution)
CS
Promotion
Group
(parts
distribution)
1,600 containers/month
To prevent reduced load efficiency due
to an increase in the size of products
being shipped, Sharp has introduced
trucks equipped with adjustable height
shelves for two-stage loading. The
trucks’ shelves can be elevated
according to the size of products to be
transported, making for more efficient
use of the space inside.
As a result, precision equipment, which
is normally difficult to stack, can now be
safely transported, thus contributing to
the reduction of environmental impact in
distribution.
In addition to changing modes of
transport in Japan and overseas, Sharp
will also change from air cargo to
high-speed vessels in the future.
Committee for Compliance
with the Energy Conservation
Law as a Shipper
Office
Objectives for Fiscal 2009
Measures for Improving
Transport Efficiency
In Japan, Sharp is shifting from trucks to
more environmentally friendly transportation, such as railway and ships. In fiscal
2006, Sharp reduced CO2 emissions by
approximately 5,327 t-CO2 per year
(29% more than the previous fiscal
year’s reduction) compared to transportation by truck.
1,500
■ Energy-saving promotion system
in distribution
Objectives for Fiscal 2007
CO2 reduction volume
Environmental
Protection
Group
(waste
distribution)
Trucks with higher load efficiency
Measures for Saving
Resources
In addition to energy-saving measures,
Sharp is promoting measures for
resource savings in distribution.
In fiscal 2006, Sharp started to recycle
cushioning materials used for protecting
products and preventing load collapse
when transporting products.
Cushioning materials are normally
disposed of as industrial waste after use.
With the introduction of reusable
cushioning materials, however, Sharp
greatly reduces waste.
■ Transport volume (shipper
distribution) in response to the
Energy Conservation Law
Range of
distribution
Transport volume
(1,000 ton-kilometers)
Sharp Corporation
156,511
CO2 emissions
(t-CO2)
33,466
SEC won an excellence award in the
SmartWay Transport Program
Reusable cushioning materials
Preliminary figures
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● Data on distribution
39
Environmental and Social Report 2007
Sharp and the Environment
In Pursuit 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.
Objectives for Fiscal 2006
Achievements for Fiscal 2006
Future Objectives
Respond to the increased number of
items requiring recycling
Recycling Four Kinds of Home Appliances in Japan
(Air Conditioners, TVs, Refrigerators, and Washing Machines)
Sharp is constructing a highly efficient
recycling system by collaborating with
five other consumer electronics
companies*1 to operate 190 designated
sites for picking up old appliances and
18 sites for recycling in Japan.
*1 Five collaborating companies: Fujitsu General Ltd.,
Hitachi Appliances, Inc., Mitsubishi Electric Corporation,
Sanyo Electric Co., Ltd., Sony Corporation (in
alphabetical order)
■ Sharp Corporation’s recycled units
for the four home appliances
(thousands of units)
1,400
In fiscal 2006, four types of home
appliances designated under the
Japanese Home Appliances Recycling
Law—about 1.31 million units in total
(up 1% over the previous fiscal year)—
were recovered and recycled. The
processing rates in the recycling plants
satisfied the legal standard for all four
kinds of appliances.
1,245
1,200 1,112 1,159
1,000
314
352
266
275
371
376
800
600
400
In future, Sharp will improve its system
in response to changes, such as an
increase in the amount of products
collected, and will work to further
improve the recycling rate.
1,299 1,313
388
382
294
298
300
399
408
444
366
200
0
161
156
186
205
187
2002
2003
2004
2005
2006
(fiscal year)
Air conditioners
TVs
Refrigerators
Washing machines
■ Sharp Corporation’s recycling rates
for the four home appliances (fiscal 2006)
Environmentally Conscious Logistics and Packaging / Developing Super Green Recycling
Improved recycling rate
(up 3 points over the previous fiscal year in four
home appliances in total)
Boost domestic recycling of
used home appliances
(%)
Air conditioners
TVs
Refrigerators
Washing machines
Recycling rate
87
74
72
80
Legal standard
60
55
50
50
Reusing and Recycling
Copiers in Japan
Collected used copiers with minor
deterioration are remanufactured: after
being tested, they are dismantled, and
their parts are cleaned and tested
before being returned to the production
line. New parts are also added to
guarantee performance and quality
equal to new products.
In fiscal 2006, approximately 33,000
copiers (up 25% over the previous fiscal
year) were recovered, and 179 units
(down 62% over the previous fiscal year)
were remanufactured and shipped. The
decrease in the number of remanufactured copiers was due to model
changes. Sharp will work to increase the
number of remanufactured copiers by
introducing more recyclable models.
Approximately 695,000 toner cartridges
(up 38% over the previous fiscal year)
were recovered, and about 250,000
remanufactured toner cartridges (up 2%
over the previous fiscal year) were
shipped.
Models and parts not targeted for reuse
are sorted manually by type of component material to facilitate recycling.
Second Plant of Kansai Recycling Systems Starts Operation
Kansai Recycling Systems Co., Ltd., a
consumer electronics recycling company
created with investment by seven
companies including Sharp Corporation
and Mitsubishi Materials Corporation,
began operation of a second recycling
plant in December 2006. Located in Iga
City, Mie Prefecture, it recycles TV sets
exclusively, with an annual capacity of
about 500,000 units.
In the time leading up to the end of analog
broadcasting in 2011 in Japan, there is
expected to be a sharply increased
demand for TV recycling. This plant has
state-of-the-art automated facilities for
integrated processing—everything from
dismantling TVs to refining glass cullet*2.
The plant totally recycles materials
contained in the TV sets, such as plastic,
copper, iron, aluminum, and glass.
It is located not far from the Kameyama
Plant and Mie Plant, both of which are
Sharp’s main manufacturing bases for
LCD panels and LCD TVs, as well as
from the Tenri Plant, an R&D base for
LCD technology. By strengthening the
collaboration between the recycling plant
and Sharp’s manufacturing and research
departments, Sharp hopes to develop
new recycling technologies and
easy-to-recycle environmentally
conscious products.
*2 Refining glass cullet: Remove foreign matter from the
glass of used CRTs and refine the glass into a
near-pure substance.
Second plant of Kansai Recycling Systems
Recycling PCs in Japan
In compliance with the Japanese Law
for Promotion of Effective Utilization of
Resources, Sharp is recycling businessand home-use PCs.
For home-use PCs, the PC industry is
working with Japan Post in a collection
system in operation at more than
20,000 post offices around Japan.
In fiscal 2006, recovered and recycled
PCs amounted to approximately 4,300
business- and home-use desktop and
notebook PCs (up 20% over the
previous fiscal year) and about 2,000
monitors (up 5% over the previous fiscal
year).
Information on website
http://sharp-world.com/corporate/eco/report2007/
● Data on recycling of used products
Environmental and Social Report 2007
40
Sharp and the Environment
In Pursuit of Becoming an Environmentally Advanced Corporate Group
Promoting Environmental Communication
To enhance environmental communication with its wide range of stakeholders, Sharp discloses environmental
information through various media and exhibitions, including Environmental and Social Reports, websites, and
newspaper ads. Each Sharp site is also promoting dialogue with stakeholders by holding factory tours and
various events.
Environmental and Social
Report, Website on Social
and Environmental Activities
Every year since 1999, Sharp has issued
an annual report on its environmental
activities. Starting with the 2005 edition,
the report expanded to include the social
aspects of Sharp’s business activities.
The title was thus changed to the
Environmental and Social Report. The
2006 edition of the Environmental and
Social Report won an award of merit in
the 10th Green Reporting Awards
sponsored by Toyo Keizai Inc. and the
Green Reporting Forum.
In addition to using articles from the
Environmental and Social Report,
Sharp’s website presents more
specialized content with examples of
specific activities and detailed data on
environmental impact.
Exhibitions
Advertising and
Commercials
In order to share its environmental
message and goals with a wider
audience, Sharp creates TV and
newspaper ads. Using the slogan “Let's
go Ecology Class with Sharp,” the ads
highlight Sharp’s environmentally
conscious activities.
In fiscal 2006, a Sharp TV commercial
introducing environmentally friendly
residential photovoltaic power systems
won an award for excellence in the
environmental TV commercial category
of the 10th Environmental Communication Awards in Japan.
Sharp publicizes its environmental
activities through participation in
domestic and overseas exhibitions.
In Japan, Sharp participated for the first
time in the Ecolife Fair 2006, where it
showed how solar power generation
can help curb global warming. Sharp
has taken part in the Eco Products
exhibition every year since 2000, and in
2006 it introduced its environmentally
friendly activities, technologies, and
products.
At IFA 2006 in Berlin, Germany, Sharp
exhibited AQUOS LCD TVs, which are
certified for the EU Eco-label.
TV commercial
Sharp Environmental and
Social Report 2006
(Japanese, English, and
Chinese editions)
Website for Sharp’s social and
environmental activities
http://sharp-world.com/corporate/eco/
Eco Products 2006
Newspaper ad
Exchanges with Stakeholders
To enhance communication with its wide
range of stakeholders, Sharp holds
factory tours and other events.
In November 2006, Sharp invited
members of Kobe University and Mie
University to its sites. The lively
discussions with the visitors gave Sharp
Stakeholder dialogue session with
Kobe University’s Kokubu Laboratory
some interesting new ideas for future
environmental and CSR efforts.
A parent-child study tour held during
summer vacation attracted nearly 1,000
people and allowed Sharp to strengthen
relations with neighboring residents.
Parent-child study tour during summer vacation
(Tenri Plant)
Information on website
http://sharp-world.com/corporate/eco/report2007/ ● Exchanges with local communities
41
Environmental and Social Report 2007
Sharp LCD TVs at the EU Eco-label booth
at IFA 2006 in Berlin
Ecolife Fair 2006
Sharp and Society
In Pursuit of Becoming a Corporate Group
Trusted by Society
Progress in the Social Dimension of CSR................................... 43
For Customers
Living Up to Customers’ Trust by Delivering Satisfaction .......... 45
Reinforcing Information Security ................................................47
For Shareholders and Investors
Appropriate Return of Profits and Information Disclosure ......... 48
For Business Partners
Mutual Prosperity with Suppliers and Dealers ........................... 49
For Employees
Creating a Fair, Positive, and Progressive Workplace ................51
For Local Communities
Social Contribution Activities as a Corporate Citizen ................ 53
Nara-Wakakusayama Green Campaign 2007
Since 2003, Sharp has carried out beautification activities at Wakakusayama in Nara Prefecture, Japan. On May 26, 2007,
at the fifth edition of this cleanup, about 1,250 Sharp employees, family members, acquaintances, and former employees took part.
Environmental and Social Report 2007
42
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
Progress in the Social Dimension of CSR
Sharp established the Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct as standards of
conduct to fulfill Sharp’s business philosophy and business creed, which are the origin of the Sharp Group’s CSR.
Based on the Group Charter of Corporate Behavior and the Code of Conduct, each functional group sets major
social themes and targets in CSR and develops various measures while promoting continual efforts for
improvement.
Promoting CSR Efforts in
the Social Dimension
To promote CSR efforts in the social
dimension, Sharp takes measures at the
levels of management, group, and
department.
On the management level, the
CSR/BRM*1 Committee (see page 6)
discusses and decides company-wide
promotion measures, and each
functional group implements specific
measures across the company.
On the level of departments and
employees, CSR is put into practice
through work broken down into specific
duties.
*1 BRM: Business risk management
Efforts for Fiscal 2006
Examples of Sharp’s distinctive efforts in
the social dimension of CSR are
introduced in the Special Focus section
(page 17 to 23: the Customer
Assistance Center, CSR activities at
sales bases in Japan, and joint
environmental education with weathercasters).
Field
Important Themes
Build internal control system
Management System
Practice compliance in business
In addition to these efforts, Sharp
achieved results in the Corporate
Affirmative Action for Women Strategy
Program and other such activities in
fiscal 2006. Sharp will regularly assess
the progress of such measures, identify
problems and make further improvements thereof—these steps functioning
as a management system—and work to
incorporate these CSR measures into
the work process.
Strengthen business risk management
Improve customer satisfaction
Secure quality and safety
For Customers
Management level
Create products that are easier to use
■ CSR Through R-CATS*2
• Discuss and decide company-wide
basic policy and measures at the
CSR/BRM Committee
Group level
(functional groups and head office departments)
• Put into practice promotion measures
discussed and decided at the CSR/BRM
Committee
• Set and promote measures in each
group
Department and employee level
• Fulfill CSR through work based on
company-wide promotion measures and
group measures
• R-CATS small-group activities
• Participate in the Sharp Green Club
(environmental and social contribution
activities)
Small-Group Activities
R-CATS are small-group activities in
which production and quality
departments, as well as other
indirectly related departments,
participate. All workplaces in Japan
and overseas set themes from the
viewpoint of CSR for common
problems in everyday work and join
together to take action and solve
these problems.
From September to October 2006,
Sharp held R-CATS Overseas
Conventions in three regions: Asia,
China, and Pan-Atlantic. In
November, Sharp held the
Worldwide R-CATS Convention for
the best teams selected from the
regional conventions. Themes
presented in the final round included
improvement of production and
quality as well as customer
assistance and distribution. In fiscal
2006, a total of 40,623 employees
from 4,188 teams (including 13,278
employees from 1,280 teams at
overseas sites) participated in
R-CATS activities to fulfill CSR in
each workplace.
*2 R-CATS: Revolution Creative Action Teams
43
Environmental and Social Report 2007
Strengthen personal information protection
system
For Shareholders and
Investors
Improve communication with shareholders
and investors
For Business Partners
Promote CSR across entire supply chain
Strengthen human resource development
For Employees
Develop company-wide affirmative action
for women
Promote occupational safety and health
For Local Communities
Expand and diversify social contribution
activities
See
page(s)
• Formulated basic policy for internal control
• Established Internal Control Committee
• Implemented various measures for improving
internal control system
• Provided internal control e-learning
• Have internal control system in place and operating
• Analyze operation and implement problem-solving measures for internal control system
• Conduct internal control audits
• Build internal control IT system
5
• Provided legal affairs/compliance e-learning
• Conducted mandatory compliance seminar for
directors and management in business groups
• Revised job-level-specific compliance training
curriculum
• Improve compliance enlightenment tools
• Create compliance guidebook
• Review management methods for
important risks
• Revised risk assessment standards to identify
important risks
(“level of impact” x “probability of occurrence)
• Create BCM (business continuity management) system
• Create PDCA cycle-based management system to improve BCP (business continuity
plan) of all domestic production sites
• Improve quality of customer support
• Opened call center in Japan dedicated to AQUOS
LCD TVs (toll free phone number for inquiries)
• Revamped training for improving technical
knowledge and inquiry response skills of personnel
at Customer Assistance Center in Japan
• Achieve higher ranking in customer satisfaction surveys of inquiry response skills
• Use statistics to achieve greater accuracy in predicting number of inquiries; this will
lead to improved phone call reception rate
• Inaugurated special management system in which
staff in charge of technology, quality, and service
are assigned to Customer Assistance Center,
analyze types of inquiries, and promptly respond
to these during period immediately after release of
new products; this reduces initial product faults
• Further improve quality in early stages of product making (design, parts procurement, and
software)
• Improve training for quality engineering, etc.
• Improve system for analyzing parts and materials used
45
• Introduced tests to determine ease of use of product
instruction manuals
• Honored at 2006 Japan Manual Contest (for DVD/HDD
recorder and digital full-color MFP manuals)
• Introduce more universal design products
• Use data from Customer Assistance Center and results of usability testing to bring
universal design to more products
46
• Conducted internal audits and took improvement
measures concerning personal information
protection
• Apply for and acquire Privacy Mark certification
• Continue internal audits on departments handling personal information
• Continue to provide education to employees
47
• Gave presentations at seminars for individual
investors
• Held explanation sessions for salespeople in
charge of individual investors at securities
companies
• Improve information disclosure to shareholders and investors
• Renew contents of investor relations website
• Develop CSR study sessions for business
partners
• Improve green procurement activities for
material suppliers
• Held CSR study sessions for persons in charge at
subcontractor companies engaged in production
and work at domestic production sites
• Introduced green procurement online system and
conducted survey on environmental management
of each material supplier
• Improve supply chain CSR measures
• Introduce Sharp Supply-Chain CSR Deployment Guidebook and CSR self-check
online system for suppliers
• Promote development of diversified
human resources and capabilities to deal
with changes in business environment
• Improved SHINE program (for fostering young
global employees)
• Promoted career development of engineers
• Improved employment rate for physically and
mentally challenged in Japan (2.0% 2.02%)
• Promote continual development of diversified human resources and capabilities to deal
with changes in business environment
• Strengthen and expand human resource development programs for management and
global personnel
• Promote Corporate Affirmative Action for
Women Strategy Program in Japan
• Expand various systems for supporting
balance between work and family
• Expanded number of departments where women
can actively work in to 69; implemented female
manager candidate development program
• Established reemployment following childcare
leave system and extended period of time for
reduced working hours for childcare reasons, etc.
• Continue to promote Corporate Affirmative Action for Women Strategy Program and
consider additional measures
• Promote activities to achieve each objective of relevant programs
• Expand and diversify systems for supporting balance between work and family
• Review existing systems and consider additional measures
• Strengthen accident prevention activities
• Improve level of safety and health for
temporary staff and employees of
subcontractors stationed inside Sharp
sites
• Implemented labor-management safety and health
inspections at 10 major domestic plants
• Held monthly safety and health meetings with
subcontractors stationed inside Sharp sites in
Japan
• Strengthen industrial accident risk reduction activities
• Implement regular safety and health inspections at 11 major domestic plants, including
newly added Toyama Plant
• Promote major monthly theme-based targets
• Improve safety and health awareness of newly assigned temporary staff and employees of
subcontractors stationed inside Sharp sites in Japan
• Expand safety and health education for newly assigned employees
Japan:
• Create Sharp Forests at seven locations
• Start environmental education for
elementary schools
• Carry out local social contribution
activities at all 85 sales/service bases
Japan:
• Created Sharp Forests at six locations
• Provided environmental education at 55
elementary schools for six months starting
October
• Total of 14,078 people participated at all 85 bases
Japan:
• Create Sharp Forests at more than 10 locations
• Provide environmental education at 500 elementary schools for the year
• Expand local social contribution activities at sales/service bases
Overseas:
• Firmly establish social contribution
activities at major sites
Overseas:
• In China, established Sharp Charitable Fund and
started various activities
• Continued to carry out environmental social
contribution activities at Asian bases
• Improve internal control system
• Improve compliance training system
• Reduce initial product faults
• Improve usability (ease of use) of digital
consumer electronics
• Make company-wide efforts to acquire
Privacy Mark certification in Japan
• Strengthen IR activities aimed at
individual investors
Progress in the Social Dimension of CSR
Efforts for Fiscal 2007
Efforts (Achievements) for Fiscal 2006
6
6, website
17 • 18
45 • 46
48
Overseas:
• Expand activities centered on Sharp Charitable Fund in China
• Develop information network concerning social contribution activities at overseas bases
49 • 50
51 • 52
51, website
52
19 • 20
21 – 23
53 • 54
Environmental and Social Report 2007
44
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Customers
Living Up to Customers’ Trust by Delivering Satisfaction
In order to bring out user-friendly products that reflect the desires of customers, Sharp conducts usability testing.
Sharp pursues customer satisfaction by supplying products and services that customers can always rely on.
The company also takes the customers’ viewpoint as it trains its employees to put the concept of usability into
actual products.
Efforts (Achievements) for Fiscal 2006
• Improve the quality of
customer support
• Reduce initial product
faults
• Improve usability
(ease of use) of digital
consumer electronics
Efforts for Fiscal 2007
• Opened a call center in Japan dedicated to AQUOS LCD TVs (toll free phone number for inquiries) • Achieve a higher ranking in customer satisfaction surveys of inquiry response skills
• Revamped training for improving the technical knowledge and inquiry response skills of
• Use statistics to achieve greater accuracy in predicting the number of
personnel at the Customer Assistance Center in Japan
inquiries; this will lead to an improved phone call reception rate
• Further improve quality in the early stages of product making
• Inaugurated a special management system in which staff in charge of technology, quality, and
(design, parts procurement, and software)
service are assigned to the Customer Assistance Center, analyze the types of inquiries, and
promptly respond to these during the period immediately after the release of new products;
• Improve the training for quality engineering, etc.
this reduces initial product faults
• Improve system for analyzing parts and materials used
• Introduced tests to determine ease of use of product instruction manuals
• Honored at 2006 Japan Manual Contest (for DVD/HDD recorder and digital full-color
MFP manuals)
• Introduce more universal design products
• Use data from the Customer Assistance Center and the results of
usability testing to bring universal design to more products
Active Disclosure of
Quality Information
Basic Stance and Vision on Customer Satisfaction and Quality
Quality Philosophy
To respond to society’s needs and make
products that satisfy our customers, we keep
the slogan “Quality First” in mind at all times.
Displayed at every Sharp site as a
company-wide slogan for quality
Systems for Ensuring Product
Safety and Quality
Sharp ensures product safety by
complying with the revised Consumer
Products Safety Law, which went into
effect in Japan on May 14, 2007.
Moreover, the Sharp Group has
established a voluntary action plan on
product safety. These specify 1) the
Sharp Voluntary Product Safety Action
Policy, 2) the product safety promotion
system, 3) efforts for ensuring the safety
of products, and 4) response to
accidents with products. By putting the
related plans into action, Sharp is
increasing product safety and thus
putting consumers at ease.
In the event that a Sharp product is
found to be responsible for injury to
customers or for damage to property,
Sharp will disclose relevant information
immediately in newspapers and via its
website, and will establish a desk to
directly receive inquiries from customers
in order to avoid any further problems.
During fiscal 2006, Sharp notified
customers as below in Japan, providing
free-of-charge inspection, repair, and
replacement services.
Sharp stresses to employees the
importance of ensuring product safety
and quality for customers. All employees
participate in the constant improvement
of quality.
CS Innovation Activities
Improve Service
• Announced that part of the structure of some
LED display systems was found to be
non-compliant with technical standards under
the Japanese Electrical Appliance and
Material Safety Law.
• Announced free-of-charge inspection and
repair service for some models of twin-tub
and fully automatic washing machines for rare
cases of potential smoke and fire.
Overseas Topics
Global Parts Meeting
Guided by the slogan “Aiming for No. 1
in Customer Satisfaction,” Sharp is
engaged in innovative activities that
provide prompt, reliable service to
enhance customer satisfaction.
To ensure that customers are not kept
waiting for service visits, in fiscal 2006
18 major Sharp bases in Japan
introduced a same-day home-visit
system for people who purchase large
AQUOS LCD TVs. Sharp also started
same-day repair service for customers
bringing in products, be they old or new,
to 12 main sites.
Moreover, to improve the level of
technical service and ensure that all
customers are treated properly, Sharp
encourages all service personnel to
acquire internal qualifications for
technical skills and customer service
sensitivity.
Sharp will continue to pursue a higher
level of customer satisfaction by
approaching its improvement from all
possible angles.
45
Environmental and Social Report 2007
In March 2007, managers of the world’s four major
service parts bases in Japan, America, Europe,
and Asia held the 7th Global Parts Meeting at
Sharp’s Osaka Head Office. The participants
discussed specific measures for achieving both
prompt supply of parts and reduction of inventory.
By streamlining and centralizing service in future,
service personnel will improve customer service
worldwide through appropriate inventory
management on a consolidated basis.
Global Parts Meeting
American CS Strategy Conference
In August 2006, US sales company SEC
welcomed representatives from Sharp bases in
the Americas and Sharp Corporation to the
American CS Strategy Conference in order to
improve product quality and service.
At the conference, Sharp introduced two
strategies: the super quality innovation strategy for
achieving unparalleled quality; and the CS
innovation strategy for becoming No.1 in
customer satisfaction. The participants also
shared in the creation of an industry-leading
service system and in the improvement of a quality
assurance program for new product development.
American CS Strategy Conference
Creating Products that Are Easier to Use
Making Products Easier to Use
Through Usability Testing
Sharp will expand its efforts to improve
usability of all products, and will create
high-quality, genuine products that give
customers greater satisfaction.
For Customers
In fiscal 2006, Sharp focused on
audio-visual products in improving the
usability of digital consumer electronics.
Examples of these efforts are shown on
the right.
When the record button is pressed, the recorder
automatically turns on and starts recording a program
being watched
on an AQUOS
LCD TV
LCD displays the
type of
broadcasting
selected
Frequently used record
and playback buttons
are placed near the top
for easy access
Creating Easy-to-Understand
Instruction Manuals
As digital consumer electronics become
increasingly convenient and
sophisticated, they also become more
complicated to operate. To help
customers better understand products,
Sharp is conducting usability testing so
as to reflect customer requirements in
product instruction manuals. Sharp
instruction manuals improved through
this process have been praised by
third-party organizations.
AQUOS Familink
Eight direct-function buttons
on the AQUOS remote
control enable fast operation
Equipment such as HD recorders,
Blu-ray Disc player/recorders, and
surround sound systems can be
easily operated with a single
remote control in combination with
the AQUOS LCD TV using the
AQUOS Familink.
At the 2006 Japan Manual Contest
(sponsored by the Japan Technical
Communicators Association), which
honors user-friendly instruction manuals,
Sharp won awards for its DVD/HDD
recorder and digital full-color MFP
manuals.
Training People to Create
“Usability”
Sharp provides usability engineer
training for persons in charge of product
development.
Sharp has also established an in-house
qualification system on usability. Staff
trained in this system have the
knowledge and technical skills needed
to play a key role in improving usability
at the product development stage.
1) Simple guide for DVD/HDD recorder
Two-page spread is easy to understand. This page
explains how the product is different from video
tape recorders.
Award of excellence, brochure manual category,
2006 Japan Manual Contest
Training participants discuss usability of an
actual product
2) Simple operation guide for
digital full-color MFP
The effective use of illustrations and color
makes the manual easy to understand.
Outstanding award, brochure manual
category, 2006 Japan Manual Contest
Training participants role-play an interview
during skills training
Information on website
■ Sharp Voluntary Product Safety Action Policy ■ Quality guarantee system
http://sharp-world.com/corporate/eco/report2007/ ■ ISO 9001-certified sites (companies)
Environmental and Social Report 2007
46
Sharp and Society
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. By strengthening information management systems, improving the safety of
information infrastructure, and providing employees with comprehensive training on information management and
security, Sharp is aiming to become a company that can be thoroughly trusted with information security and
personal information protection.
Efforts (Achievements) for Fiscal 2006
• Make company-wide efforts to acquire
Privacy Mark certification in Japan
Efforts for Fiscal 2007
• Apply for and acquire Privacy Mark certification
• Continue internal audits on departments handling personal
information
• Continue to provide education to employees
• Conducted internal audits and took
improvement measures concerning
personal information protection
System to Protect Personal Information and Corporate Secrets
To protect personal information of
customers and other stakeholders as well
as its own corporate secrets, Sharp
established the Information Security
Promotion Department and the Personal
Information Protection Promotion
Department in 2004. The company is
stepping up information security and
personal information protection through the
system shown in the figure below.
conducted annual internal audits since fiscal
2005 that are used to take corrective
measures. In fiscal 2007, Sharp will work to
qualify for the Privacy Mark, a certification
given to businesses that comply with the
Japanese Industrial Standard (JIS) for
personal information protection.
In information security, Sharp is working to
raise the level of protection for confidential
information. In fiscal 2005, Sharp introduced
a self-check and assessment system to be
conducted by every business group at all
companies in Japan to monitor how well
measures to protect confidential information
are being implemented.
At semi-annual meetings of the Information
Security Committee in which managers from
all domestic group companies participate,
Sharp follows up on semi-annual basic
policies and checks how measures are
being carried out.
Sharp will continue to step up management
systems by firmly establishing self-checking
and internal audits.
In the area of personal information
protection, Sharp formulated audit rules for
handling personal information and has
■ System for information security and protection of personal information in Japan
Information Security
Committee
Information Security Management System
Chief information
security officer
Personal Information Protection System
Corporate Senior
Executive Vice President,
Chief General
Administration Officer
Personal Information
Protection Promotion
Department
Information Security
Promotion Department
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
Business group
supervisor
Business group
supervisor
Department
general manager
Department
general manager
Educating Employees Through E-Learning
Since fiscal 2005, Sharp has provided
all Sharp Group employees in Japan
with once-a-year e-learning courses in
information security and personal
information protection. The program
covers everything that should be
considered in protecting information in
daily work. The program also includes
comprehension tests and awareness
surveys, the results of which are used to
plan further improvement measures and
future e-learning content.
47
Chief privacy
officer
Environmental and Social Report 2007
Screen shots of the
e-learning program
Raising Security Levels and
Reinforcing Information
Security Systems at
Overseas Bases
At overseas bases, Sharp has
established an information security
system based on the laws and
circumstances of each country and
region. To reinforce and spread the
implementation of information security
measures at all overseas bases, Sharp
focused on the following three measures
in fiscal 2006:
1) Start of local information security
committees in the world’s four major
areas: Europe, the Americas, Asia,
and China (October 2006)
2) Formulation of basic rules concerning
security management (December
2006)
3) Self-assessment of security levels
(self-checks similar to those in Japan
were conducted in January 2007)
In fiscal 2007, Sharp will introduce
centralized management tools (for
automatically collecting PC-stored
information and automating user
authentication in the network) to
maintain and develop permanent PC
security measures at all Sharp Group
bases worldwide, and will take
measures to protect important data
stored on servers.
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. By
providing prompt, accurate, and wide-ranging information, Sharp is promoting communication with shareholders
and investors in Japan and overseas, and the valuable feedback of these stakeholders is regularly relayed to Sharp
management for future improvements.
Efforts (Achievements) for Fiscal 2006
• Strengthen IR activities aimed at individual
investors
• Gave presentations at seminars for individual
investors
• Held explanation sessions for salespeople in
charge of individual investors at securities companies
Sharp considers distributing profits to
shareholders to be one of the most
important management issues. While
maintaining consistently stable dividend
pay-outs, and while considering its
consolidated business performance,
financial situation, and future business
development in a careful and comprehensive manner, Sharp implements a set of
policies to return profits to its shareholders, such as increasing the amount of
periodic dividends.
Active Investor Relations
Communication with Institutional
Investors and Analysts
In fiscal 2006, Sharp was actively
engaged in individual interviews and
meetings with institutional investors and
analysts at the Osaka and Tokyo offices.
Sharp also held quarterly financial result
announcements, business strategy
briefings, and factory tours. Overseas,
Sharp’s management and IR teams
visited institutional investors and held
conferences at consumer electronics
shows.
Under such a policy, annual dividends in
fiscal 2006 were 26 yen per share, which
marked an increase for the seventh
consecutive period. Sharp will strive to
return its profits to shareholders, aiming
for a dividend pay-out ratio of 30%, on a
consolidated basis in the future.
By making its website for investor
relations in both Japanese and English,
Sharp provides prompt and fair
information to investors both in and out
of Japan. Sharp will continue to improve
the accuracy and frequency of the
information that it discloses.
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.
Communication with Individual
Investors
■ Net income per share
(consolidated)
2002
29.37
2003
55.37
2004
70.04
Because Sharp considers it important to
have shareholders from a wide range of
backgrounds, the company is working
to communicate more with individual
investors.
(fiscal year)
2005
80.85
2006
93.25
(yen)
■ Cash dividends per share
2002
15
2003
18
2004
20
2005
22
(fiscal year)
2006
26
• Improve information disclosure to shareholders
and investors
• Renew contents of the investor relations website
For Customers / For Shareholders and Investors
Basic Policies Concerning
Profit Sharing
Efforts for Fiscal 2007
In fiscal 2006, Sharp created a website
and reports for shareholders that use
layman’s terms and as little financial
jargon as possible. Sharp also
participated in various stock-promotion
seminars for individual investors, where
the company explained its business
results and strategy and held
question-and-answer sessions. As well,
Sharp held explanation sessions for
salespeople in charge of individual
investors at securities companies.
General Shareholders’ Meetings
Sharp strives to create an environment
that enables shareholders to exercise
voting rights at the ordinary general
meeting of shareholders: efforts include
holding the meetings earlier than most
Japanese companies, allowing
shareholders to exercise voting rights by
computers and mobile phones,
participating in a platform for electronic
voting rights for institutional investors,
and posting English notices about the
meetings on the website.
Sharp also makes public the events of
shareholders’ meetings by posting video
on the website the day after the
meetings for a certain period of time. For
the general shareholders’ meeting in
June 2007, Sharp used a larger venue
so that as many shareholders as
possible could attend.
■ Share distribution (as of March 31, 2007)
Japanese corporations
and others 7%
Japanese
individuals
16%
Japanese
financial
institutions
Foreign
47%
shareholders
30%
(yen)
SRI (Socially Responsible Investment)*
As part of information disclosure to
stakeholders, Sharp cooperates in good
faith with research organizations doing
surveys on socially responsible
investment (SRI). In September 2006,
Sharp participated in an explanation
session for SRI investors sponsored by
securities companies in Paris to
introduce its main businesses and
environmental strategy.
As of June 2007, Sharp was one of the
stocks chosen for the following SRI
indices:
• FTSE4 Good Global Index (UK);
March 2007
• Ethibel Sustainability Index (Belgium)
• Morningstar Socially Responsible
Investment Index (Japan);
September 2006
• KLD Global Climate 100 Index (US);
May 2007
* SRI: Investment in companies that fulfill not
only their financial obligations but their
environmental and social responsibilities
as well.
Information on website
http://sharp-world.com/corporate/eco/report2007/ ■ Investor relations
Environmental and Social Report 2007
48
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Business Partners
Mutual Prosperity with Suppliers and Dealers
Sharp carries out procurement activities through fair evaluation, ensuring that all domestic and overseas companies
are provided with equal opportunities. To build good relationship with business partners, Sharp promotes dialogue
through explanation sessions and informal gatherings that deepen mutual understanding. It is also Sharp’s belief
that CSR activities should apply to the entire supply chain, including its business partners.
Efforts (Achievements) for Fiscal 2006
• Develop CSR study sessions for business partners
• Improve green procurement activities for material
suppliers
Equal Opportunity and Fair
Evaluation for All Domestic
and Overseas Suppliers
With production activities in Japan and
overseas, Sharp procures parts, materials,
and equipment based on the concept of
providing equal opportunities to all
domestic and overseas suppliers. It also
fairly evaluates whether the procurement
meets Sharp’s requirements for quality,
standards, and performance.
Sharp has stipulated Basic Purchasing
Principles that clearly define the
fundamentals of impartial and fair
purchasing and that promote the
development of mutual collaboration and
trust with business partners. Sharp thus
pursues a prosperous coexistence with its
business partners.
Basic Purchasing Principles
1. Basic Procurement Concept
1) Sharp’s procurement activities are
conducted in an open and impartial
manner, with a fair evaluation given
to suppliers in and outside Japan.
2) Sharp will comply with laws and
regulations, and achieve mutual
prosperity with suppliers.
3) Sharp will practice such social
responsibility as the conservation of
the environment through
procurement activities.
4) Sharp pursues optimal quality and
cost to the fullest.
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
49
Environmental and Social Report 2006
Efforts for Fiscal 2007
• Held CSR study sessions for persons in charge at
subcontractor companies engaged in production
and work at domestic production sites
• Introduced green procurement online system and
conducted survey on environmental management
of each material supplier
• Improve supply chain CSR measures
• Introduce Sharp Supply-Chain CSR
Deployment Guidebook and CSR self-check
online system for suppliers
Making CSR a Common Goal Across the Entire Supply Chain
In fulfilling social responsibility in
business activities as a manufacturer,
Sharp must go beyond its group
companies and include the network of
business partners encompassing the
entire supply chain from parts and
materials procurement to manufacture,
distribution, and sales.
Consequently, in May 2004, Sharp
revised its Basic Purchasing Principles,
which it had originally established in
1990, to include important requirements
for suppliers; for example,
understanding of and cooperation with
Sharp’s CSR activities such as
environmental conservation and
compliance with laws and regulations. In
June 2005, Sharp added the
requirement that suppliers promote CSR
activities. This revision applying to
domestic and overseas suppliers has
been put in writing and posted on the
website so that Sharp’s basic concepts
and requirements are clear to
companies that seek to do business
with Sharp.
Sharp will continue to fulfill CSR across
the entire supply chain by constantly
checking to see that its basic principles
and requirements meet the needs of
society.
■ Close communication for mutual understanding (Japan)
Sharp
Entire
company
Business and Purchasing
Policies Explanation
Meeting (once a year)
Supplier meeting (semi-annually)
Business
groups
• Explanation of industrial and
product trends
• Explanation of business plans
• Open exchange of opinions
Purchasing
staff
Buyers from each parts
category exchange opinions
and information with
business partners
on a daily basis.
Business
partners
Close
communication
and
mutual
understanding
Overseas Topics About 1,500 Suppliers Participate in
Green Procurement Survey Explanation
Sessions Around the World
From December 2006 to March 2007, Sharp held green procurement survey explanation
sessions in 13 locations in seven countries* in Asia, Europe, and North America. A total of
2,120 representatives from 1,517 business partners participated in the sessions.
At the explanation sessions, Sharp explained its
green procurement policy and survey procedure
concerning chemical substances contained in
parts and materials and requested suppliers’
cooperation. The goal was to ensure that suppliers
complied with regulations for containment of
chemical substances in their countries.
In fiscal 2007, Sharp plans to hold similar sessions
in South Korea, the Philippines, and Indonesia.
Green procurement survey explanation
* China, Thailand, Malaysia, Poland, France, the US, Mexico session in China
Approaching CSR Together with Suppliers
In fiscal 2005, targeting persons in
charge at subcontractor companies
engaged in production and work at
Sharp sites in Japan, Sharp held
explanation sessions at each site on
themes like labor, safety and health
management, and environmental
conservation. In fiscal 2006, Sharp held
study sessions on topics such as labor
laws, safety and health measures,
information security, and the environment for persons from subcontractor
companies responsible for operations at
Sharp sites in Japan.
In fiscal 2006, to help suppliers check
their own CSR efforts at the international
level, Sharp added its own content to
the Supply-Chain CSR Deployment
Guidebook issued by JEITA (Japan
Electronics and Information Technology
Industries Association) and published
the Sharp Supply-Chain CSR Deployment Guidebook (tutorials of CSR items
and check sheets; Japanese, English,
and Chinese editions). Since May 2007,
Sharp is asking suppliers to use this
guidebook in stepping up CSR efforts
and evaluating their own progress.
For Business Partners
In fiscal 2004, Sharp started CSR efforts
spanning the entire supply chain, inviting
major partner companies in Japan to
CSR explanation sessions and seminars.
Through these efforts, Sharp helped to
implement a CSR promotion system at
partner companies and devised a
checklist to encourage them to carry out
independent evaluation of their progress.
In fiscal 2007, Sharp will build a CSR
self-check online system based on this
guidebook and promote CSR selfchecking by suppliers in Japan and
overseas.
By fiscal 2006, Sharp had already
concluded Basic Business Agreements
and Agreements for Green Procurement
with almost all domestic suppliers, and
these suppliers have since been carrying
out environmental conservation
measures through green procurement.
■ Items explained in Supply-Chain CSR Deployment Guidebook
I Human Rights and Labor
III Environment
1. Prohibit forced labor
2. Prohibit inhumane treatment and
infringements of human rights
3. Prohibit child labor
4. Prohibit discrimination
5. Pay appropriate wages
6. Regulate working hours
7. Respect the right to freedom of association
1. Establish and apply an environmental
management system
2. Control hazardous chemicals in products
3. Control hazardous chemicals in
manufacturing
4. Minimize environmental pollution
(water, soil, air)
5. Obtain environmental permits
6. Promote resource and energy saving by
reusing, reducing, and recycling (3R)
7. Promote greenhouse gas reduction
8. Promote waste reduction
9. Disclose environmental preservation
activities
II Occupational Health and Safety
1. Apply safety measures for equipment and
instruments
2. Promote safe activities in the workplace
3. Promote hygiene in the workplace
4. Apply appropriate measures for
occupational injuries and illnesses
5. Properly manage disasters and accidents
6. Be careful about physically demanding work
7. Promote safety and hygiene in all
company facilities
8. Promote health maintenance programs for
employees
6. Respect intellectual property
7. Use appropriate export
procedures
8. Disclose appropriate company
information
9. Detect injustice promptly
VI Information Security
V Product Quality and
Safety
1. Contribute to society and community
1. Prohibit corruption and bribery
2. Prohibit abuse of a superior position
3. Prohibit the offering and receiving of
inappropriate profit and advantage
4. Prohibit impediments to free competition
5. Provide accurate information on products
and services
Response to Subcontract Act
Regarding in-house education, the
Corporate Procurement Center of the
Corporate Procurement Group provides
study sessions on the Subcontract Act at
all domestic sites. Each Sharp site
evaluates how well it has complied with
the Subcontract Act. The center also
conducts regular audits of the sites. Sharp
also set up a Subcontract Act FAQ section
on its website, which facilitates the sharing
VII Contribution to Society
1. Establish and apply a quality
management system
2. Ensure product safety
IV Fair Trading
To comply with the Act Against Delay in
Payment of Subcontract Proceeds, Etc. to
Subcontractors (the Subcontract Act),
which protects subcontractors in Japan,
Sharp is strengthening measures for
in-house education, compliance checks,
and ordering systems.
1. Secure computer networks against threats
2. Prevent the leakage of personal information
3. Prevent the leakage of customer and
third-party confidential information
of information inside the company by
posting questions from employees and
answers from the company.
Meanwhile, for the ordering system for
suppliers, Sharp has 1) built a mold order
system that complies with the revised
Subcontract Act and 2) made business
data transparent using EDI (electronic data
interchange). In addition, Sharp actively
participates in activities of the Japan Fair
Trade Commission and industry organizations (such as JEITA) to keep up with the
latest information and trends on the
Subcontract Act, and conducts rigorous
monitoring and audits of all its domestic
sites.
Supply-Chain CSR
Deployment
Guidebook
(Japanese, English,
and Chinese
editions)
Fulfilling CSR Together
with Dealers
Sharp’s sales and marketing
departments in Japan, which deal
directly with dealers, introduce the
company’s CSR concept and efforts at
new product seminars for domestic
dealers.
By conducting activities that meet the
needs of specific regions, Sharp is also
creating partnerships to jointly pursue
CSR in sales and service.
(For details, see Special Focus 2 on pages 19 and 20)
Information on website
http://sharp-world.com/corporate/eco/report2007/ ■ Sharp Basic Purchasing Principles (full text) ■ Sharp Supply-Chain CSR Deployment Guidebook
Environmental and Social Report 2007
50
Sharp and Society
In Pursuit of Becoming a Corporate Group Trusted by Society
For Employees
Creating a Fair, Positive, and Progressive Workplace
Sharp stresses the importance of basic human rights and personal dignity, provides opportunities to enthusiastic
employees, and fosters the diverse abilities of all employees. By 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.
Efforts (Achievements) for Fiscal 2006
• Improved the SHINE program (for fostering young
global employees)
• Promoted career development of engineers
• Improved the employment rate for the physically and
mentally challenged in Japan (from 2.0% to 2.02%)
• Promote continual development of diversified human resources and
capabilities to deal with changes in the business environment
• Strengthen and expand human resource development programs for
management and global personnel
• Promote the Corporate Affirmative
Action for Women Strategy Program
in Japan
• Expand various systems for
supporting the balance between
work and family
• Expanded the number of departments where women
can actively work in to 69; implemented female
manager candidate development program
• Established the reemployment following childcare
leave system and extended the period of time for
reduced working hours for childcare reasons, etc.
• Continue to promote the Corporate Affirmative Action for Women
Strategy Program and consider additional measures
• Promote activities to achieve each objective of relevant programs
• Expand and diversify systems for supporting the balance between work
and family
• Review existing systems and consider additional measures
• Strengthen accident prevention
activities
• Improve the level of safety and health
for temporary staff and employees of
subcontractors stationed inside
Sharp sites
• Implemented labor-management safety and health
inspections at 10 major domestic plants
• Held monthly safety and health meetings with
subcontractors stationed inside Sharp sites in Japan
• Strengthen industrial accident risk reduction activities
• Implement regular safety and health inspections at 11 major domestic
plants, including the newly added Toyama Plant
• Promote major monthly theme-based targets
• Improve safety and health awareness of newly assigned temporary staff
and employees of subcontractors stationed inside Sharp sites in Japan
• Expand safety and health education for newly assigned 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 (as shown below) that value the
initiative and diversity of each employee
and help them develop their individuality,
motivation, and creativity.
In fiscal 2007, Sharp will strengthen and
expand programs for fostering global
human resources and people playing a
key role in future management.
Next-generation human resource
development systems
• Leadership program, Challenge course
• MOT (management of technology) program
• Master system
Systems for bringing out individual ability and
motivation
• Personnel declaration/career development
system, career development rotation
• Recruitment entry system
• Corporate Affirmative Action for Women
Strategy Program
• SHINE program (for fostering young global
employees)
Education, training, and self-development
support systems
• Seminars classified by function and specialized
field
• Correspondence course, Essential course
• Step-up campaign (qualification acquisition
encouragement plan)
51
Efforts for Fiscal 2007
• Promote development of diversified
human resources and capabilities to
deal with changes in the business
environment
Environmental and Social Report 2007
Basic Human Rights and
Personal Dignity
The Sharp Group Charter of Corporate
Behavior and the Sharp Code of
Conduct stipulate the corporate policy
and guiding principles for executives
and employees regarding protecting
basic human rights and personal dignity,
such as the prohibition of both child and
forced labor. To promote these values,
human rights seminars are held every
year at each Sharp domestic site. At
overseas bases, Sharp is making efforts
to prevent the occurrence of human
rights problems, in accordance with
relevant local laws and regulations.
Good Labor-Management
Relationship Through Dialogue
Sharp respects employees’ right to organize
and right of collective bargaining based on
the laws in each country and region, and
promotes amicable, trusting relationships
with labor unions. In Japan, Sharp has
monthly labor-management meetings: these
include the Central Labor-Management
Council, which involves top executives from
both sides, and Local Labor-Management
Council meetings at each site, where
opinions are exchanged on the business
situation and labor-management subjects. In
Europe, Sharp has held European Works
Council meetings every year since 1997.
Company-Wide Affirmative Action for Women* Promotion
Campaign
In October 2004, Sharp Corporation
established a team in the Human
Resources Group that is in charge of
expanding opportunities for women. This
team heads the efforts of the CompanyWide Affirmative Action for Women
Promotion Campaign.
Based on analysis of personnel data, for
example those from the personnel
declaration system, and the results of
awareness surveys for all managers and
female employees, the Corporate
Affirmative Action for Women Strategy
Program was started in June 2005. The
1
New Face
program
2
Female junior
manager 25%
target
6
Awareness raising
of female
Corporate Affirmative employees
3
Female
manager candidate
development
program
Action for Women
Strategy Program
4
Fostering
abilities of female
employees
5
Awareness
enlightening of
management
* Affirmative action for women: A voluntary
company effort that seeks to redress
discrimination against women in employment
and ensure equal opportunities (stipulated under
the Law for Equal Employment Opportunity for
Men and Women in Japan).
program defines measures to be
implemented, as well as targets, regarding
matters such as the expansion of job fields
for female employees and the promotion of
women to managerial posts.
Sharp Corporation is also systematically
expanding various systems supporting the
balance between work and family. In 2006,
the company established the reemployment
following childcare leave system and
extended the period of time for reduced
working hours for childcare reasons. As a
result of these measures, in April 2007
Sharp Corporation was certified by the
Japanese Ministry of Health, Labour and
Welfare as a company that achieved the
action plan of the Law Concerning the
Promotion of Measures for Supporting
Next-Generation Development.
With the expansion of various measures and
systems under the Company-Wide
Affirmative Action for Women Promotion
Campaign in Japan, Sharp will create
workplaces where all employees can
demonstrate their diverse abilities regardless
of gender.
Next-generation certification mark
(nickname: Kurumin)
Shows that the company is
certified by the Ministry of Health,
Labour and Welfare.
Labor and Management Discuss and Promote Safety
and Health
Each site plans and carries out various
activities based on monthly labormanagement safety and health committee meetings. And since fiscal 2006, each
site has held monthly safety and health
meetings to further improve the safety
and health of employees of subcontractors stationed inside Sharp sites.
least four days) was 0.13 in fiscal 2006, a
more than 50% decrease over the
previous fiscal year.
In the future, through safety and health
inspections and major monthly themebased targets, Sharp will firmly establish
and strengthen safety and health activities.
Sharp will also cooperate with subcontractors stationed inside Sharp sites to help
newly assigned and less experienced
employees of these subcontractors be
aware of safety and health so that
industrial accidents can be prevented.
■ Annual industrial accident rates in Japan
(per thousand employees)
Every two months, Sharp Corporation
also holds Central Safety and Health
Committee meetings that bring Sharp
and the labor union together. Participants
confirm the status of company-wide
safety and health efforts and share
valuable information.
4.0
Teams composed of safety and health
managers from Sharp Corporation and
members of the labor union carry out
safety and health inspections at each
plant.
1.0
At Sharp Corporation, the annual rate of
industrial accidents per thousand
employees (resulting in a shut-down of at
Overseas Topics
Since fiscal 2004, Sharp Corporation
has carried out the SHINE (Sharp
International New Experience) program
to foster employees capable of doing
business internationally. Under the
program, young employees (age about
30) are sent overseas for one-and-ahalf to two years to receive practical
business training at Sharp subsidiaries
or language training at local language
schools. A total of 37 trainees have
been sent to 12 countries so far. In the
practical business course, trainees
acquire specialized skills in fields such
as sales, administration, production,
and material procurement, while in the
language course, they learn languages
such as Chinese and Russian.
Sharp selects candidates for the
program through company-wide open
recruitment. Any employee, regardless
of post and experience, can apply for
the program, and the company has
been aggressively enrolling enthusiastic and capable young employees,
both male and female.
3.5
3.0
3.4
3.4
2.6
2.6
2.5
0.26
0.17
2002
2003
3.3
2.5
3.3
2.4
2.0
1.5
0.5
0.0
0.47
2004
0.30
2005
0.13
Sharp created Healthy Sharp 21, a
comprehensive health-promotion
program in Japan for employees and
their families. Healthy Sharp 21 includes
voluntary fitness programs that
encourage individuals to change their
lifestyles and daily habits so as to
prevent or remedy lifestyle diseases.
For Employees
Sharp Corporation has established the
Basic Philosophy and the Safety and
Health Principles in the area of safety and
health. Every year, the company
formulates specific objectives and action
plans with the goal of totally eliminating
industrial accidents.
Health Promotion for
Employees and
Their Families
Sharp also gives employees periodic
physical checkups, with 99.94% of all
employees in Japan undergoing these
checkups in fiscal 2006. There is also
active follow-up for employees who are
screened for further medical examinations in the form of reexaminations and
health maintenance guidance.
Sharp will work to create programs in
Japan to encourage employees to make
lifestyle changes involving diet, exercise,
and smoking, and to heighten
awareness of health self-management
so that employees can avoid or treat
problems such as metabolic syndrome,
one of the major health issues today.
2006
(year)
Manufacturing industry average
All-industry average
Sharp Corporation
Note: Averages for all industries and the manufacturing
industry are based on a survey by the Ministry of
Health, Labour and Welfare.
Employing the Physically
and Mentally Challenged
and the Elderly
Sharp Corporation has established the
Committee for Promoting Employment of
the Challenged and remains committed to
actively employing the physically and
mentally challenged and creating a workerfriendly environment. In fiscal 2006, Sharp
Corporation’s physically and mentally
challenged employment rate reached 2.02%.
Sharp’s efforts for the employment of the
physically and mentally challenged have a
long history. In 1950, Sharp incorporated a
separate factory and named it the Tokusen
Metal Limited Partnership to help rehabilitate
blinded war veterans. Today, its successor,
Sharp Tokusen Industry Co., is making
efforts as a special subsidiary to increase
the special needs employment level.
In employment of the elderly, those
employees who have reached the
mandatory retirement age of 60 can request
reemployment with Sharp Corporation (until
the age when they start receiving public
pension).
Mental Health Care
Sharp Corporation helps its employees
prevent and deal with mental illnesses at
an early stage and supports their
smooth return from medical leave. At
major sites, the company has developed
a counseling system involving medical
specialists, company counselors, and
an outside medical service institute. To
promote correct awareness of mental
health, the company also conducts
various training and awareness activities.
Since fiscal 2006, as part of periodic
health checkups, Sharp Corporation has
carried out mental stress checkups on
all employees (based on self-diagnosis).
For employees who have been found to
have high stress levels, the company
provides one-on-one counseling
through company physicians and
counselors.
In the coming years, Sharp Corporation
will expand in-house mental health
counseling and further strengthen
consultation using outside medical
service institutes.
Information on website
http://sharp-world.com/corporate/eco/report2007/ ■ Personnel, education, and training systems
■ Company-Wide Affirmative Action for Women Promotion Campaign ■ Personnel data ■ Health and safety data
Environmental and Social Report 2007
52
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 all around Japan in
areas where Sharp bases and sales offices are located.
Efforts (Achievements) for Fiscal 2006
Japan:
• Create Sharp Forests at seven locations
• Start environmental education for
elementary schools
• Carry out local social contribution
activities at all 85 sales/service bases
Overseas:
• Firmly establish social contribution
activities at major sites
Japan:
• Created Sharp Forests at six locations
• Provided environmental education at 55 elementary
schools for six months starting October
• A total of 14,078 people participated at all 85 bases
Overseas:
• In China, established the Sharp Charitable Fund and
started various activities
• Continued to carry out environmental social
contribution activities at Asian bases
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
running a variety of social contribution
activities (mainly environmental volunteer
activities).
The SGC aims to provide employees with
opportunities to contribute to communities by
doing physical labor with local citizens while
becoming more aware of the importance of
the environment and volunteering.
In fiscal 2006, a total of 28,678 employees, an
increase of about 1,500 over the previous
fiscal year, participated in SGC activities.
For its tree-planting and cleanup activities at
Wakakusayama, Nara Prefecture since 2003,
the SGC was honored by the Nara Park
Management Office as the first volunteer
group to carry out landscape conservation
activities at Wakakusayama.
Efforts for Fiscal 2007
Japan:
• Create Sharp Forests at more than 10 locations
• Provide environmental education at 500 elementary schools for
the year
• Expand local social contribution activities at sales/service bases
Overseas:
• Expand activities centered on the Sharp Charitable Fund in
China
• Develop an information network concerning social contribution
activities at overseas bases
Creating Sharp Forests in Prefectures
with Sharp Business Sites
As one of its main activities, the SGC is
creating Sharp Forests in areas of Sharp
bases and sales offices around Japan.
This initiative aims to contribute to the
regeneration of forests by planting and
cultivating new trees, as well as foster
employee environmental awareness
through contact with the natural
environment.
Since starting the first Sharp Forest in
Hachihonmatsu Yoshikawa in Hiroshima
Prefecture in 2004, Sharp has created a
total of seven forests including the
newest one, the Sharp Forest in Kagawa
Prefecture in April 2007.
Within fiscal 2007, Sharp plans to
increase the number of Sharp Forests to
10 or more.
Wakakusayama Green Campaign 2007
Cosponsoring the Asian Pacific Awards
Environmental and Social Report 2007
Established
March 2007
Taki Sharp Forest*
Taki District,
Mie Prefecture
May 2006
Tenri Kofun
Sharp Forest
Tenri City,
Nara Prefecture
April 2006
Sharp Green Club
Asuka Forest
Asuka Village,
Nara Prefecture
October 2006
Konoyama Sharp Forest*
Kishiwada City,
Osaka Prefecture
April 2006
Kagawa Sharp Forest*
Takamatsu City,
Kagawa Prefecture
April 2007
Leave Systems to Support
Social Contribution Activities
With the volunteer leave system,
employees can take up to one year off
53
Location
Yaita City,
Tochigi Prefecture
* Certified as the first example of reforestation in
which a prefectural government and private
enterprise collaborate.
To enhance awareness and make it
easier for employees to contribute to
society and participate in volunteer
activities, Sharp Corporation introduced
the volunteer leave system and the
multipurpose leave system in Japan.
The Asian Pacific Awards (sponsored by
Mainichi Newspapers Co. and Asian
Affairs Research Council) honor
distinguished works on topics including
politics, economics, diplomacy, and
culture in the Asia-Pacific region. Sharp
has been a cosponsor since the start of
these awards in 1989 as part of efforts
to contribute to development in the
Asia-Pacific region. The commendation
ceremony of the 18th Asian Pacific
Awards was held in November 2006.
Name
Yaita Sharp Forest
Hachihonmatsu Yoshikawa Higashi-Hiroshima City,
November 2004
Sharp Forest
Hiroshima Prefecture
Individual overseas sites have also carried out
a variety of activities such as tree-planting,
cleanups in local communities, and
environmental education classes at schools.
Sharp will continue to carry out environmental
conservation activities in cooperation with
local communities.
Kagawa Sharp Forest
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 doing other socially
valuable activities.
Approximately 160 Students
Accepted for Internship
Sharp Corporation has an internship
program in Japan that gives university
students on-the-job training to support
their career development.
In fiscal 2006, the company received
about 90 liberal arts students in its
business internship programs and about
70 science and technology students in
its technical internship programs.
18th Asian Pacific Awards ceremony
Examples of Local Social Contribution Activities in Japan and Overseas
For Local Communities
■ Support activities for local events
■ Participating in the Environmental Festival
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).
In March 2007, about 270 employees of Sharp Corporation
and subcontractor companies participated in the
Environmental Festival (sponsored by Kameyama City) held
in the industrial complex where the Kameyama Plant is
located. To protect the natural environment, the employees
cooperated with local residents in transplanting some 400
cedar and oak trees growing in a soon-to-be-developed
part of the industrial complex to a nearby open ground.
■ Welcoming corporate facility tours
■ Establishing the Sharp Charitable Fund
in China
■ Contributing through local cleanup
activities (SATL/Thailand)
Sharp established the Sharp Charitable Fund in cooperation
with the Shanghai Charity Foundation in May 2006.
Sharp has sponsored the Shanghai Children’s Japanese
Chess Championship since 2000, in which about 2,000
children from elementary schools and junior and senior high
schools participate. Sharp also donated 37-inch LCD TVs (25
units) to 23 hospitals in Shanghai and Jiangsu Province. The
Sharp Scholarship System was introduced to 11 universities
in Shanghai, Jiangsu Province, and Beijing, with Sharp
granting scholarships worth one year of school tuition to 138
students. Sharp has also been engaged in environmental
conservation activities such as planting trees in China.
With the participation of about 400 employees and
their families, SATL conducted cleanup activities
with Khaohinsorn Elementary and Junior High School
in Chachoengsao Province in December 2006. In
addition to cleanup activities, the participants
painted notice boards, planted trees, and donated a
set of gardening tools to the school.
In fiscal 2006, Sharp’s Tokyo Branch held science
experiment classes and solar cell seminars, with
about 350 people attending the events. At the
Advanced Development & Planning Center in Tenri,
Nara, Sharp held a parent-child study tour in which
about 1,000 people participated.
At the Higashi-Hiroshima Plant in Hiroshima and at
other plants, Sharp provides special programs for
junior high school students and younger children to
tour and experience workplaces. These programs
are used by schools as part of their education and
career guidance.
■ Supporting a museum exhibition
(SEF/France)
SEF cosponsored a dragon exhibition at the Museum
National d’Histoire Naturelle in Paris from April to
November 2006. SEF provided LCD TVs and
projectors for the exhibition, which was visited by
about 450,000 people.
Bernard FAYE/Museum National d’Histoire Naturelle©
■ New Orleans reconstruction charity
project wins American Business Award
(SEC/US)
■ Personnel cooperation based on
Sharp’s businesses
Since fiscal 2003, the Mie Plant has sent employees
to local senior high schools as lecturers for special
science classes. In fiscal 2006, the class theme
focused on the theory of LCDs and environmental
conservation.
In November, employees of the Katsuragi Plant in
Nara went to a university in Osaka and gave lectures
on the characteristics of solar power systems and
how they contribute to the environment.
In New Orleans, Louisiana, where reconstruction efforts are
still going on after the catastrophic damage from Hurricane
Katrina in 2005, SEC sponsored a charity reconstruction
project, called SOLA in NOLA, in March 2007. SEC donated
Sharp solar power systems to 10 homes along the
Mississippi River where damage from the hurricane was
most severe. These were installed free of charge in a
cooperative effort among SEC, a reconstruction project group
named Holy Cross, and employees of SEC’s 10 dealer
companies.
These activities earned SEC the award for
Best Corporate Social Responsibility
Program (in the category of companies with
100 to 2,500 employees) from the
American Business Awards, which honor
the most innovative, outstanding
achievements of the year by US businesses.
Information on website
http://sharp-world.com/corporate/eco/report2007/ ■ Sharp Forests ■ Examples of local social contribution activities
Environmental and Social Report 2007
54
Third-Party Review
55
Environmental and Social Report 2007
Information on Sharp’s Website
Additional information related to this Environmental and Social Report can be found on Sharp’s website at:
http://sharp-world.com/corporate/eco/report2007/
The contents of the website are subject to update, revision, and deletion without prior notice.
Environmental and Social Report Contents
Information on the website
GRI content index
Sites (companies) covered by environmental performance data
Calculation standards for environmental performance indices
Compiling This Report
Concept of CSR (Corporate Social Responsibility)
A Message to People and the Earth
–
–
Outline of the Sharp Group
Special Feature
Sharp’s Goal: Sustainable Manufacturing
Special
Focus
1 Expanding the Use of Solar Energy
2 Environmentally Conscious Product Design
3 Reducing Negative Environmental Impacts in Production Facilities
1. The Customer Assistance Center
2. CSR Activities at Sales Bases in Japan
3. Environmental Education with Weathercasters
Sharp and the Environment
Developing Super Green Technologies
Creating Super Green Products and Devices
Building Super Green Factories
Curbing 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
Progress in the Social Dimension of CSR
Sharp and Society
For Customers
−
–
Sharp Voluntary Product Safety Action Policy
Quality guarantee system
ISO 9001-certified sites (companies)
Living Up to Customers’ Trust by
Delivering Satisfaction
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
7, 8
9–16
19, 20
21–23
Sharp Group Charter of Corporate Behavior (full text)
Sharp Code of Conduct (full text)
ISO 14001-certified sites (companies)
Environmental education
Environmental technologies
Green Products
Green Devices
LCA data for major products
Green Procurement Guidelines
Green Factories
Environmental data on Sharp production sites
Reductions in greenhouse gases
Data on greenhouse gases
Waste reduction
Data on waste
Effective water usage
Data on water usage
Data on chemical substance management
Data on the atmosphere and water quality
Data on distribution
Data on recycling of used products
Exchanges with local communities
Advancing Super Green Management
5, 6
17, 18
–
–
–
Advanced Measures for Environmental Conservation as
Management Policy
1
2
3, 4
Sharp Group Charter of Corporate Behavior (full text)
Sharp Code of Conduct (full text)
Sharp Group’s efforts to firmly establish CSR and BRM
Disaster risk management
Respect for intellectual property rights
Financial results
Photovoltaic power systems
Corporate vision
AQUOS
Green Products
Kameyama Plant
Green Factories
Management System
See page(s)
in the report
–
25, 26
27–30
31, 32
33, 34
35
36
37
38
39
40
41
43, 44
45, 46
47
48
Investor relations
Sharp Basic Purchasing Principles (full text)
Sharp Supply-Chain CSR Deployment Guidebook
Personnel, education, and training systems
Company-Wide Affirmative Action for Women Promotion Campaign
Personnel data
Health and safety data
Sharp Forests
Examples of local social contribution activities
Environmental/social history and awards
49, 50
51, 52
53, 54
−
Environmental and Social Report 2007
56
This report has been certified for Color Universal Design, a user-oriented
design system developed in consideration of people with various types of
color vision, to allow information to be accurately conveyed to as many
individuals as possible. The system was developed by the Color Universal
Design Organization (CUDO), a nonprofit organization in Japan.
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 2007
Printed in Japan

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