Climate Change Data

Sharp Corporation

Climate Impact & Sustainability Data (2011-04 to 2012-03, 2012-04 to 2013-03, 2014)

Reporting Period: 2011-04 to 2012-03

Environmental Metrics

Total Carbon Emissions:1.41 million tons CO2e
Scope 1 Emissions:422 thousand tons CO2e
Scope 2 Emissions:992 thousand tons CO2e
Scope 3 Emissions:8,442 thousand tons CO2e
Total Energy Consumption:26,918 TJ
Water Consumption:12,125 thousand m3
Waste Generated:158 thousand tons

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions from customer use of Sharp's energy-creating and energy-saving products by 4.42 million tons, 3.1 times actual emissions from Sharp's business activities.
  • Achieved zero discharge to landfill for the eleventh consecutive year in Japan.
  • Recycled 1,410 tons of plastic using closed-loop recycling technology.

Social Achievements

  • Improved customer satisfaction in after-sales service, achieving top brand status in four product categories for three consecutive years.
  • Expanded environmental education programs to 500 elementary schools in Japan and 75 schools in ASEAN regions.
  • Implemented company-wide diversity training.

Governance Achievements

  • Appointed one new outside member to the Board of Directors, establishing two outside board member positions.
  • Continued to improve the objectivity and soundness of the governance system.
  • Strengthened compliance and legal systems in Japan and internationally.

Climate Goals & Targets

Medium-term Goals:
  • Have greenhouse gas emission reductions achieved through Sharp’s solar power-related businesses be at least equal to greenhouse gas emissions from Sharp business activities (including those in the supply chain) and the use of Sharp products by fiscal 2020.
Short-term Goals:
  • Increase recycling efficiency of used LCD TVs.

Environmental Challenges

  • Unanticipated worsening of the business environment resulting in a sharp drop-off in sales and adjustments to production.
  • Supply chain disruptions due to flooding in Thailand.
  • Intellectual property right violations.
Mitigation Strategies
  • Implemented measures to reduce total volume of greenhouse gas and waste discharge despite worsening per-unit figures.
  • Established an emergency operations center in response to the Thailand floods.
  • Cooperated with government agencies to combat intellectual property violations.

Supply Chain Management

Responsible Procurement
  • Green Procurement Guidelines
  • Sharp Supply-Chain CSR Deployment Guidebook
  • Basic Parts Purchase Agreement with CSR clause

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Opportunities
  • Expansion of solar power business

Reporting Standards

Frameworks Used: GRI, Environmental Reporting Guidelines (Ministry of the Environment, Japan)

Certifications: ISO 14001, Privacy Mark

Sustainable Products & Innovation

  • AQUOS LCD TVs
  • LED lighting
  • Solar modules
  • Plasmacluster appliances

Awards & Recognition

  • Minister of Economy, Trade and Industry Prize (Energy Conservation Grand Prize)
  • Energy Conservation Center Chairman’s Prize (Energy Conservation Grand Prize)
  • ENERGY STAR® Award for Excellence (SEC, US)
  • New Energy Policy Category Award (15th Green Reporting Awards)

Reporting Period: 2012-04 to 2013-03

Environmental Metrics

Total Carbon Emissions:1329 thousand tons CO2 (excluding Green Power Certificates)
Scope 1 Emissions:333 thousand tons CO2
Scope 2 Emissions:994 thousand tons CO2
Scope 3 Emissions:32552 thousand tons CO2

ESG Focus Areas

  • Environmental Sustainability
  • Social Responsibility
  • Governance

Environmental Achievements

  • Reduced production-based CO2 emissions by 29% from fiscal 2007 levels and 4.5% compared to BAU.
  • Reduced waste discharged at 10 Sharp Corporation plants by 76.5% from fiscal 2007 levels and 14.9% compared to BAU.
  • Achieved zero discharge to landfill for the 12th consecutive year.
  • Increased Super Green Products’ share of net sales in Japan to 58%
  • Increased Advanced Green Products’ share of net sales in Japan to 86%
  • Increased Super Green Devices’ share of net sales to 66%
  • Increased Green Devices’ share of net sales to 98%

Social Achievements

  • High ratings for after-sales service.
  • Active development of global personnel.
  • Conducting social action programs at the local level in Japan and abroad.
  • New educational support activities for challenged children.
  • Achieved checkup participation rate of 99.9% and actively provided health guidance to those with symptoms.

Governance Achievements

  • Improved transparency, objectivity, and soundness in management.
  • Continuously put into practice various policies related to the internal control system.
  • Reviewed and improved BCPs for major overseas production bases.
  • Implemented compliance training for employees in Japan and abroad.
  • Strengthened information security measures.

Climate Goals & Targets

Medium-term Goals:
  • Improve specific energy consumption rate by an average of 1% each year (average for fiscal 2011 to 2015).
  • Reduce CO2 emissions per shipping volume by an average of 1% each year (average for fiscal 2011 to 2015).
Short-term Goals:
  • Increase avoided emissions to 1.5 times the amount of emissions by 2020.

Environmental Challenges

  • Second consecutive year with a large operating loss and net loss.
  • Increased CO2 emissions per production unit at overseas plants due to downturn in production.
  • Increased waste discharged per production unit at overseas plants due to decreased production.
Mitigation Strategies
  • Company reform and medium-term management plan.
  • Implementing energy-saving measures and optimal treatment of PFCs.
  • Deploying know-how developed in Japan to overseas production facilities.
  • Efforts to recycle solid and liquid waste and recover valuable resources.

Supply Chain Management

Responsible Procurement
  • Basic Purchasing Principles
  • Sharp Supply-Chain CSR Deployment Guidebook
  • CSR procurement surveys
  • CSR procurement audits

Climate-Related Risks & Opportunities

Opportunities
  • Expansion of solar power business

Reporting Standards

Frameworks Used: GRI, ISO 26000, OECD Guidelines for Multinational Enterprises, UN Global Compact

Certifications: ISO 14001, ISO 9001, OHSAS 18001 (at 10 domestic production sites), Privacy Mark

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Sharp's initiatives in renewable energy, energy efficiency, resource recycling, and waste reduction contribute to these goals.

Sustainable Products & Innovation

  • Energy-efficient LCD TVs, refrigerators, air purifiers, air conditioners, washing machines
  • Solar cells with world’s highest conversion efficiency
  • IGZO technology for energy-efficient LCDs

Awards & Recognition

  • ENERGY STAR® Partner of the Year Award (SEC)
  • Reduce, Reuse, Recycle Promotion Association Chairman’s Prize (3 Sharp Corporation plants)
  • Energy Conservation Center Chairman’s Prize (ES-Z100 washer-dryer)
  • Display Industry Awards Gold Award (IGZO technology)

Reporting Period: 2014

Environmental Metrics

Total Carbon Emissions:17 million tons CO2
Scope 1 Emissions:196 thousand tons CO2
Scope 2 Emissions:1,111 thousand tons CO2
Scope 3 Emissions:29,052 thousand tons CO2

ESG Focus Areas

  • Supply Chain CSR Initiatives
  • Respect for Human Rights and Diversity Management
  • Increasing Green Shared Value
  • Ensuring the Safety and Reliability of Products and Enhancing Customer Satisfaction
  • Stakeholder Engagement

Environmental Achievements

  • Reduced GHG emissions by 15% from the previous fiscal year to 17 million tons CO2. Positive impact (avoided GHG emissions) was equivalent to 27 million tons CO2, down 10% from the previous fiscal year.
  • Japan production plants achieved zero discharge to landfill for the 14th consecutive year.
  • 66 product models were certified as Super Green Products (SGP).

Social Achievements

  • Maintained a 2.3% employment rate for the physically or mentally challenged.
  • Increased customer satisfaction by enhancing service capabilities and customer response skills.
  • Held career development training programs for female supervisors.

Governance Achievements

  • Increased the number of outside directors to five to boost the transparency of management and strengthen supervisory functions.
  • Revised the operation of the Internal Control Committee to make oversight by the Board of Directors more effective.
  • Implemented various compliance measures, including training on antitrust laws.

Climate Goals & Targets

Long-term Goals:
  • By the end of fiscal 2017, reduce by 10% or more (compared to fiscal 2013) the total number of sick leave days taken due to mental problems and illnesses.
  • Achieve Healthy Sharp 23 numerical targets.
Short-term Goals:
  • Increase the rate of female managers to 5% by fiscal 2018.
  • Final landfill disposal rate of 1.1% or less.

Environmental Challenges

  • Large net losses in fiscal 2014.
  • Tough financial situation.
  • Increased awareness of consumer issues.
  • Increased awareness by society and stakeholders of social issues affecting the global supply chain.
  • Increased globalization of business expanding the number of opportunities for employees from different cultures and customs to work together.
Mitigation Strategies
  • Implementing measures of the Fiscal 2015–2017 Medium-Term Management Plan to get business results back on track and secure a business structure geared to sustainable growth.
  • Fundamental HR reform measure to select and appoint highly capable human resources regardless of nationality, gender, or age.
  • Strengthening risk management for overseas subsidiaries.
  • Establishing supply chain CSR initiatives.
  • Promoting diversity management.

Supply Chain Management

Supplier Audits: Three plants of overseas suppliers audited in fiscal 2014. Expansion of CSR audits in collaboration with external audit organizations planned for fiscal 2015.

Responsible Procurement
  • Green Procurement Guidelines
  • Sharp Supply-Chain CSR Deployment Guidebook (aligned with EICC Code of Conduct)
  • Basic Purchasing Principles

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Expansion of solar power systems

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO 14001

Sustainable Products & Innovation

  • Super Green Products (SGP)
  • Green Products (GP)
  • Green Devices (GD)
  • Blacksolar residential-use solar modules
  • Cloud storage battery system
  • Peak-cut system
  • Photovoltaic-thermal (PV-thermal) system

Awards & Recognition

  • ECCJ Chairman's Prize (SJ-GF60A Plasmacluster refrigerator)
  • METI Minister's Prize (Kameyama Plant energy-saving initiatives)
  • Excellence Prize in the 18th Environmental Communication Awards 2014