Sony Corporation

RATING

SECTOR

Technology

WEBSITE

CONTACT

1-7-1 Konan Minato-ku, Tokyo, 108-0075 Japan

STOCK EXCHANGE

LISTING

  • 2020 Worldʼs Most Ethical Companies issued by Ethisphere Institute (United States) 
  • Gold Rating in the 2019 PRIDE Index from work with Pride (Japan)

EMPLOYEES

114,400

CHIEF SUSTAINABILITY OFFICER

Shiro Kambe

AWARDS

  • Partnership Prize of 15th Ecotourism Awards by Ministry of the Environment, Japan 
  • New Energy Foundation Chairman Award under the New Energy Award by New Energy Foundation 
  • Gold Award in Zero Injury Campaign by Ministry of Labour, Thailand 
  • 2019 Best of the Best Corporation for Inclusion by National Business Inclusion Consortium and National LGBT Chamber of Commerce (United Sates)
  • SOHELP Program Achievement (Systematic Occupational Health Enhancement Level Programme)  (Level 5 for Chemical and Ergonomic, Level 4 for Noise) by Department of Occupational Safety & Health, Malaysia

CONTENT SOURCE

FURTHER READING

Report created by Muge Acar

Sony Coporation

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Sony Corporation is a Japanese multinational conglomerate corporation headquartered in Kōnan, Minato, Tokyo and was founded by Akio Morita and Masaru Ibuka on May 7, 1946.

The company operates as one of the world’s largest manufacturers of consumer and professional electronic products, the largest video game console company, the second largest video game publisher, the second largest record company, as well as one of the most comprehensive media companies.

They are the largest Japanese media conglomerate by size overtaking the privately held, family-owned Yomiuri Shimbun Holdings.

Sony Corp. engages in the development, design, manufacture, and sale of electronic equipment, instruments, devices, game consoles, and software for consumers, professionals and industrial markets.

It operates through the following segments: Game and Network Services, Music, Pictures, Home Entertainment and Sound, Imaging Products and Solutions, Mobile Communications, Semiconductors, Financial Services, and All Others.

  • The Game and Network Services segment deals with gaming machines, software and network services.
  • The Music segment produces and publishes music and provides image media platforms.
  • The Pictures segment handles film production, television program creation, and media networks.
  • The Home Entertainment and Sound segment offers LCD televisions, home audio, Blu-ray Disc players and recorders, and memory-based portable audio devices.
  • The Imaging Products and Solutions segment provides digital imaging products, professional solutions, and medical goods.
  • The Mobile Communications segment deals with mobile phones and internet services businesses.
  • The Semiconductors segment provides image sensors and camera modules.
  • The Financial Services segment manages the life insurance and non-life insurance operations and banking business.
  • The All Other segment includes personal computer (PC) business, overseas Blu-ray Disc, DVD and CD manufacturing, and battery business. 

Company Sustainability Activity

Sony’s management approach is “getting closer to people,” and its purpose is to “fill the world with emotion, through the power of creativity and technology.” For people to be connected through emotion, it is necessary for people, society, and the planet to be healthy. 

The Sony Group Code of Conduct states, “It is the core corporate responsibility of Sony to society to pursue its corporate value enhancement through innovation and sound business practices and contribute to developing a sustainable society.”

Sony also gives consideration to the impacts of its business activities on the interests of its stakeholders— shareholders, customers, employees, suppliers, business partners, local communities, other organizations—and the global environment. Sony also engages in dialogue with stakeholders to build trust and get input.

Based on these principles, Sony will create sustainable social and economic value from a long-term perspective by delivering emotional experiences to people and continuing to work with its stakeholders to pursue sustainability in such areas as the environment and human rights, implementing these initiatives across all of its businesses.

Highlights

  • Compared to 2013 Sony’s annual energy consumption of products are down 52% 
  • Sony’s CO2 emissions were reduced by using renewable energy (327 thousand tons-CO2 in total since fiscal year 2016).
  • Compared to 2015 the greenhouse gas emissions at Sony sites are down 12%.
  • In 2019 waste generated at Sony sites were  down by 20% compared with fiscal 2015.
  • In 2019 Sony conducted biodiversity protection and education activities at all Sony sites.
  • Their CO2 emissions from logistics were down 64% in 2019 compared with fiscal 2013. 
  • Sony raised awareness and inspired action by reaching an audience of over 2.3 billion through events and social media.
  • Sony promoted the One Blue Ocean Project worldwide, encouraged reduction of single use plastic use at Sony sites, and performed plastic waste cleanup activities in communities. 

Targets

Green Management 2020 Targets:

  • In Sony’s AC powered devices they aim to reduce energy consumption by 30%.
  • Sony aims to have their power consumption at no load condition and in battery maintenance mode be no more than 0.03 W.
  • The company strives to reduce the virgin plastic per product by 10%.
  • Sony aims to use recycled and certified paper.
  • Sony strives to reduce their absolute GHG emissions by 5%.
  • They’ve set the target to use renewable energy equivalent to 300,000 CO2-tons.
  • Sony will reduce absolute waste generated by 5%.
  • They will keep landfilled waste rate under 1%.
  • They aim to reduce absolute water usage by 5%.
  • Reduce absolute CO2 emissions related to logistics between nations and within regions by 10% 

Rode to Zero Targets:

    • Sony has set the goal to realize a sustainable society by achieving a zero environmental footprint throughout the life cycle of its products and business activities by the year 2050. 
    • Sony will focus on achieving its goal of sourcing 100% renewable electricity for all business sites by 2040.

Progress

Green Management 2020 Progress:

  • Sony achieved 100% renewable electricity used at their European sites.
  • Sony created environmentally conscious products in major product categories.
  • Sony raised awareness and inspired action by reaching an audience of over 2.3 billion through events and social media.
  • In their AC powered devices Sony reduced their annual energy consumption by 30%
  • All Sony smart phones launched in fiscal 2019 less than 0.03W in no load condition.
  • Sony improved their energy savings and charging efficiency in many models.
  • Sony’s amount of virgin oil-based plastics used per product unit was increased by 10% counter to their goal. 
  • Sony promoted use of recycled and certified paper based on purchasing policy for paper and printed materials.
  • Sony reduced their absolute GHG  emissions from Sony’s sites by approx. 12% reduction.
  • Sony used renewable energy equivalent to approx. 327,000 tons CO2.
  • Sony reduced absolute waste generated by approx. by 20%. 
  • Sony’s landfilled waste rated approximately 0.7%.
  • Their absolute usage of water increased by approx. 24%.
  • Sony implemented activities to preserve, educate, and raise awareness of biodiversity at all sites as part of local contribution activities. 
  • Sony requested relevant manufacturing outsourcing contractors to reduce and track emissions intensity and surveyed progress.
  • Sony reduced their absolute CO2 emissions related to logistics between nations and within regions by approx. 64%. 
  • In fiscal 2019, Sony decreased the amount of plastic waste generated from its production sites by approximately 1,456 tons.
  • By the end of fiscal 2019, plastic bottles had been removed from conference rooms at approximately 64% of Sony Group sites, including the Sony headquarters building. Plastic bags are no longer provided at shops and convenience stores located in about 86% of sites, while straws have been eliminated from cafes in about 68% of sites.

Certificates

  • ISO14001
  • LEED  certification in SEL’s (Sony Electronics Inc.) headquarters in San Diego 
  • Good Labour Practice Certification
  • Green Legacy certification from Social and Environmental Green Evaluation System (SEGES)

UN Sustainable Development Goals

UN SDGs Compliance

SDG 4

  • The Sony Science Program offers programs and workshops for children, who will shape the next generation, to gain skills for making the world a better place by applying the power of science.
  • Sony held approximately 120 workshops in fiscal 2019, providing approximately 3,500 children the opportunity to create science crafts and do computer programming using Sony products at Sony Group offices and other locations around the world.
  • In fiscal 2019, Sony’s hands-on science museums in Tokyo and Beijing, called Sony ExploraScience, attracted some 200,000 visitors.
  • In an effort to address educational inequality in Japan, Sony launched its KANDO Experience Program in 2018. In this program, Sony provides diverse KANDO (to move people emotionally) experiences, aiming to develop children’s creativity and curiosity. The program focuses primarily on elementary school students and takes place after school, in rural districts and on remote islands.
  • Utilizing Sony Group’s technologies and content, Sony partners with nonprofit organizations and other outside groups to provide workshops in STEAM (Science, Technology, Engineering, Arts and Mathematics)  fields.

SDG 7

  • Sony Computer Science Laboratories, Inc. (Sony CSL) is conducting research on Open Energy Systems (OES) ,a whole new type of bottom-up, distributed electric power system, which mainly uses renewable energy sources.
  • Sony CSL and the Okinawa Institute of Science and Technology Graduate University (OIST) are conducting a joint research project for OES. 

SDG 11

  • In the wake of the devastating bushfires that affected many communities and vast stretches of the environment in Australia from December 2019 to January 2020, Sony Foundation Australia (SFA) established a Bushfire Appeal, which to date has raised over 500,000 AUD. The Bushfire Appeal was a coordinated fundraising initiative to support young Australians in the communities hardest hit who will be dealing with the many long-term effects for some time to come.
  • Sony Computer Science Laboratories, Inc. (Sony CSL) is testing applications for Synecoculture, a sustainable agricultural practice that highly balances productivity and biodiversity. Synecoculture eliminates the need for plowing, fertilizing, and pesticide use that impact the environment, by taking maximum advantage of the material cycling that occurs naturally in ecosystems, aiming to create rich ecosystems with a diverse mix of plants that coexist together and grow lushly. 

SDG 14

  • In August 2019, Sony launched the One Blue Ocean Project, an initiative to help reduce ocean plastic pollution. It involves promoting even more activities to reduce the amount of plastics used in products and in workplaces, as well as collection of plastic waste and cleanup activities at each Sony site.

Sony corporation has set clear goals and made impressive progress in many of them, but the company still needs more to do work in many areas.

They are still using hazardous materials in their productions that are dangerous to the environment such as benzene and n-hexane from use within its supply chain.

They have put a lot of effort into the use of renewable energy  in their business but they could do more in order to cut their CO2 emissions. All things considered they get a rating of C. 

Analyst Outlook: Neutral

Sony has made significant progress towards their goals. However, much work needs to be done with regards to sourcing non- hazardous materials.

Key Points

  • Sony achieved 100% renewable electricity used at their European sites.
  • Sony is using hazardous materials in their productions that are dangerous to the environment such as benzene and n-hexane.
  • In 2014, Sony’s computer systems were hacked which released some controversial information relating to the company. The released emails showed that Sony has a problem with hiring women in high-ranking positions. Of the 17 Sony execs paid more than $1 million, only one of them (Sony Pictures co-chair Amy Pascal) is a woman. Email correspondence also suggests that Jennifer Lawrence was paid less than her male co-stars for her role in American Hustle.
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