Sony to incorporate "environmental" item in business evaluation of network companies

October 05, 2000

Sony today announced that it has incorporated an "environment" item in its business evaluation of Network Companies.
Sony recognizes that environmental protection activity plays a key role in the ongoing process of value creation management. The Network Companies involved are: Home Network Company(HNC), Personal IT Network Company(PNC), Core Technology & Network Company(CNC), Semiconductor Network Company(SNC), and Communication System Solutions Network Company(CSNC).
Because biodegradable films cannot be heat-sealed, Sony, in cooperation with a major printing company, first had to develop the technology to deposit a sealant directly on the film. This also involved numerous tests to ensure that the new film was compatible with existing packaging equipment. The New Neige MDs are the first product awarded the "GreenPla" mark certifying that they meet the safety and biodegradability standards of the Biodegradable Plastics Society, an organization established by resin manufacturers, plastic molding producers, and related enterprises to promote environmental preservation.

Environment-related items take up just under 10% the total evaluation items. The main sections of the environmental evaluation scheme are as follows:

  1. Environmental consideration related to products(including recycling)
  2. Environmental consideration related to operation processes
  3. Development of environmental technology
  4. Management, education and disclosure of environmental issues

Each Network Company has a different operational structure and consequently environmental impact varies between companies. The evaluation ratio therefore differs between each network company.

Most of the evaluation items are quantitative, but there are qualitative bonus and penalty items. Achievement of zero emissions or establishment of product recycling systems earn bonus points. On the other hand environmental accidents such as leakage of chemical substances will result in major penalty points because this impacts negatively on value creation management.

By accelerating environmental activities and integrating them into operations, Sony aims to enhance value creation management.

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