Since the 1990s, Sony sites throughout the world have sought certification under ISO 14001, an environmental management system based on the rationale of the Plan-Do-Check-Act*1 (PDCA) cycle. Acquisition of ISO 14001 certification at all sites was completed in fiscal year 2000.
 Since then, Sony has expanded this effort, integrating Group headquarters with overseas environmental departments, business units and sites, while taking advantage of the management systems already operational at each business site, and acquiring integrated ISO 14001 certification*2 for the entire Sony Group in fiscal year 2005.

 To deal with increasingly diverse and complex environmental issues that may affect Sony's operations, such as manufacturing and sales of environmentally conscious products, recycling and environmental management at sites, Sony has established specialized functions at the Sony Group's environmental headquarters, specifically in the areas of environmental management related to sites, products, procurement and product recycling, which the Representative Corporate Executive Officer is in charge of overseeing
 Each of these specialized functions works together with regional offices and departments that specialize in such areas as product quality, customer satisfaction, occupational health and safety, and disaster prevention, to achieve a uniform and effective management system. Each specialized function issues targets to the operating units, divisions and sites and reviews their progress. To promote integrated environmental management globally, Sony has established regional environmental offices to facilitate region-wide environmental management activities, such as a better understanding of local, legal and regulatory trends, effective communication of standards and instructions set forth by headquarters to the regional divisions and sites, and effective performance of audits at all regional business divisions and sites.

 Sony's corporate headquarters conducts annual assessments of the environmental impact of the entire Sony Group and, after identifying risks and opportunities, incorporates its findings into mid-range environmental targets and annual plans. In line with these plans, individual business units and sites establish and implement their own annual plans, incorporating essential elements of guiding principles established by the headquarters. Progress on the implementation of these business plans is reviewed regularly by a committee that is headed by the officer in charge of environmental affairs, contributing to ongoing improvement efforts. Awards are given annually at the regional and global levels to recognize outstanding activities in core businesses. These activities are counted as part of overall annual performance evaluations for main business units and sites and the results of these assessments are reflected in the bonuses awarded to management-level employees. To gauge the progress of these environmental activities, Sony has developed an online data system for periodically collecting performance for, among others, power consumption by products, energy used by sites and volume of waste generated.

 To ensure the effective functioning of the Plan-Do-Check-Act (PDCA) cycle for environmental policies and standards, Sony has created an environmental document structure in line with requirements of ISO 14001, the global standard for environmental management systems. The system is covering overall elements of environmental management such as management procedures on site and in the business groups, internal environmental communications and efforts to make products more environmentally conscious. To date, approximately 50 environmental documents have been issued and distributed throughout the Sony Group.

 Another means by which the Sony Group facilitates environmental action is to provide a broad environmental education for employees that is tailored to specific objectives or the type of work they perform. Sony also organizes environmental lectures by outside keynote speakers with the aim of raising the environmental awareness of its employees.

 Sony has established an integrated environmental audit system that combines three kinds of audits -- internal, corporate and external -- and aims to facilitate continuous improvements to the Sony Group's environmental management system, prevent environmental accidents at sites, and ensure the reliability of environmental data.

Examples of Improvements Resulting from Audits

• Clarification of environmental management functions of Sony Group headquarters
  The position of the procurement departments--which play a key role in the management of chemical substances in products--was clarified.
• Reinforcement of performance review system
  he frequency and contents of performance reviews for site and product aspect for both the Sony Group headquarters and individual business units were improved.
• Facilitating application of best practices identified through audits
  By effectively applying the globally consolidated audit system, steps were taken to share best practices on environmental management such as environmental audit methods and environmental education, and to address common issues across the Sony Group.
• Administrative efficiency
  Management system document structure has been simplified, improving the administrative efficiency of individual groups.

 The Sony Group Code of Conduct enshrines Sony's commitment to observing the laws and regulations of the countries and regions in which it does business, and to conducting its business in a transparent and ethical manner.

 In fiscal year 2008, Sony reported no environmental infringements, accidents, lawsuits or business deal cancellations.