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August 4, 2005

Overview of CSR Activities for Fiscal Year 2004

- Issuing CSR Report 2005 -

Sony has issued its CSR Report 2005 which covers the full spectrum of its activities relating to Corporate Social Responsibility in Fiscal Year 2004.

“CSR Report 2005” reports on CSR activities including corporate governance practices and social and environmental activities from a global perspective together with information on recent government regulations that is closely linked to the Corporation's business activities.

The Report provides detailed information, including global quantitative data, relating to Sony's resources
and relevant social issues, including interview articles of Sony's top management and stakeholders.

The content of CSR Report 2005 is also coordinated with that of the Corporation's annual report in order to enhance a complementary relationship between the two.

Provided below is a summary of Sony's CSR activities for Fiscal Year 2004 included in the CSR Report 2005.

Annual Report 2005 & CSR Report 2005

(For comprehensive information on Sony's CSR activities:

Highlights of CSR Activities in FY2004

1.Global Warming Prevention Measures throughout the Sony Group

In terms of CO2 emissions, total energy consumption at Sony sites worldwide in fiscal year 2004 was approximately 1.87 million tons, a decrease of approximately 10,000 tons from the previous year. Total CO2 emissions in Japan was approximately 950,000 tons, a decline of approximately 20,000 tons compared to fiscal year 2003, mainly due to the Energy Conservation Project at semiconductor plants.

We have obtained independent verification to ensure the credibility of data reported in the CSR Report. The accuracy and completeness of data on greenhouse gas emission volume is the most critical item among all the data.

Energy Conservation Project at the semiconductor plant
* For more detailed information, refer to page 63 of CSR Report 2005

-Example of Sony Semiconductor Kyushu Corporation, Kokubu Technology Center
Kokubu Technology Center of Sony Semiconductor Kyushu Corporation has conducted the Energy Conservation Project through Fiscal Year 2003 to FY 2004.

A high-efficiency heating and cooling system, previously installed in Kumamoto Technology Center and Sony Corporation Sendai Technology Center, was newly installed in Kokubu Technology Center. Due to this new system, Kokubu Technology center reduced annual energy consumption by approximately 24,000 tons on a CO2 basis, which accounts for about 17% of its annual CO2 emissions from energy use.

Environmental Impact of Logistics
* For more detailed information, refer to page 57 of CSR Report 2005

-Sony Supply Chain Solutions promoted modal shift and increased transport efficiency
CO2 emissions arising from the transportation activities of the Sony Group subsidiary, Sony Supply Chain Solutions, Inc. (SSCS), such as procurement of parts, domestic shipment and international logistics, amounted to 680,000 tons.

During the Fiscal Year 2004, SSCS cooperated with related divisions in order to improve the packaging system of transported materials. Instead of packaging fully assembled Plasma TVs individually for transport, SSCS, together with the logistics, product design and manufacturing divisions, started to separate the parts into three categories: stands, displays and accessories. Each is packaged collectively in transport pallets in an optimal number to the local site where they are assembled. This new scheme of transportation led to a significant increase of transport efficiency and as a result, Sony estimates CO2 emission reductions of approximately 20,000 tons.

In order to reduce the environmental impact of transport, SSCS is promoting the modal shift and co-transportation with other companies. In Fiscal Year 2004, SSCS has shifted the mode of transport in Japan for approximately 15,600 tons, which is a decrease of approximately 16%, 2,200 tons of CO2 emissions for transport by truck.

2. Management of Chemical Substances in Products

Response to RoHS Directive1
* For more detailed information, refer to pages 50,51,and 52 of CSR Report 2005

Sony is controlling the use of chemical substances in Products through the Green Partner Environmental Quality Approval Program established in Fiscal Year 2003.
In Fiscal Year 2004, Sony certified about 3800 suppliers and 180 OEM suppliers as Green Partners and audited the suppliers in order to confirm the correctness of the certification. Under this chemical substances management system, the use of 6 regulated chemical substances in the RoHS Directive has been banned since Jan, 2005.

Development of Mercury-Free Silver Oxide Battery
* For more detailed information, refer to page 54 of CSR Report 2005

In September 2004, Sony announced the accomplishment of the world's first Mercury-free silver oxide battery, an achievement which was considered difficult within the industry. Since January 2005, Sony has launched 10 models of mercury-free batteries on a world-wide basis.
Sony sells approx. 400 Million Silver Oxide batteries worldwide, and the mercury level of these is 0.2% of the total content. Making them mercury-free will lead to reducing the annual usage of mercury by 320 kg, which contributes to protecting the environment.

3. Strengthening the Compliance System

Establishment of Global Internal Hotline System: Sony Group Compliance Hotline
* For more detailed information, refer to page 16 of CSR Report 2005

With the adoption of the Sony Group Code of Conduct in May, 2003, Sony also established the “Sony Group Compliance Hotline” as a system for employees to directly report their concerns to the Compliance Officer.
During fiscal year 2004, Sony has established the Sony Group Compliance Hotline, available in the Americas, Europe, Japan, East Asia and Pan-Asia, and is ready to receive the concerns of any Sony Group employees in any part of the world.

During Fiscal Year 2004, Sony Group received approximately 240 hotline contacts through the compliance offices established in each area.

Sony Compliance Network

Sony Compliance Network

4. Systems to support employees

Teleworking system during childcare leave
* For more detailed information, refer to pages 26 and 27 of CSR Report 2005

Sony aims to provide equal employment opportunities and has placed emphasis on measures to support a diverse range of working styles, such as the balancing of career and family.
In April, 2005, Sony Corporation launched a program in Japan that enables employees to work at home during childcare leave. This system enables employees to fully express their talents and creativity, and supports a variety of working styles and lifestyles.

Number of employees utilizing the Leave of absence of child care
Result for Fiscal Year 2004: 96% of eligible employees2

  • 1: European Union's Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment: An EU directive that bans the use of six substances-lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBBs) and polybrominated diphenyl ethers (PBDEs)- in electrical and electronic equipment brought to market after July 1, 2006.
  • 2:Calculated based on the number of employees who gave birth during Fiscal Year 2004

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