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Sunday, March 20, 2011

Sony Green Management 2015




Introduction
Sony Corporation is a Japanese multinational corporation, and is the world's fifth largest media conglomerate in the world.[1] Well-known for their electronics, Sony manufacturers “audio, video, communications, and IT products for the global consumer and professional markets.”[2] In addition to being a multinational corporation and a successful enterprise, Sony is also engaged in corporate social responsibility (CSR) initiatives. Sony’s top management considers environmental preservation a “key long-term management challenge” for the company to take on.[3] To assess the challenge of environmental stewardship, and determine “targets and programs to measure and motivate change and innovation with the Sony Group,” the company developed ‘Green Management’.[4]


Green Management 2015
According to the Sony website, since the 1990s, the Sony Group has focused on a variety of environmental activities. These include developing environmentally conscious products, reducing the environmental impact of its sites and promoting product recycling. Since 1998, Sony has formulated uniform environmental mid-term targets that encompass its operations around the world, and has revised these targets every few years. At the end of fiscal 2009, Sony formulated Green Management 2015, a set of new mid-term targets that will serve as a yardstick for the environmental activities of Sony Group companies and divisions worldwide until fiscal 2015. Green Management 2015 will go into effect in fiscal 2011 and Sony will disclose its progress periodically.[5]
The specific four ‘key environmental perspectives’ that Sony will focus on for Green Management 2015 include: “climate change, resources, chemical substances and biodiversity.”[6] The goals set forth by Green Management are consistent with what Sony has determined is necessary to achieve, what it calls, “zero environmental footprint” by 2050.[7]

Sony has set these targets for 2015:
1.Research and Development
Targets
Climate Change
1.Develop technologies that reduce energy consumption of products and facilitate the use of renewable energy-e.g., technologies for managing the generation, storage and supply of energy-and thus improve energy self-sufficiency at the individual level
2.Develop information and communications technologies that support the sorts of lifestyles necessary for the realization of a low-carbon society
Resources
3.Develop and refine “3R” (Reduce,Reuse,Recycle) technologies that reduce the use of nonrenewable resources and water and the generation of waste throughout product life cycles
Chemical Substances
4.Develop technologies that reduce the use of chemical substances of very high concern (SVHCs) and facilitate the use of alternative substances
2.Product Planning and Design
Targets
Overall
1.Continuously launch Environmental Flagship models and services in each business category
Climate Change
2.Reduce annual per-product energy consumption by 30% from the fiscal 2008 level
Resources
3.Reduce utilization ratio of virgin oil-based plastics in products by 5% from the fiscal 2008 level
4.Reduce mass per product by 10% from the fiscal 2008 level
Chemical Substances
5.Eliminate Environment-related Substances to be Controlled1 which are of very high concern, polyvinyl chloride (PVC) and brominated flame retardants (BFRs) in certain specified applications
3.Procurement
Targets
Climate Change
1.Establish a mechanism for determining suppliers' greenhouse gas emissions
2.Contribute to the development of a common industrywide reporting format
Resources
3.Employ procurement practices that facilitate the achievement of targets at the “Product Planning and Design” and “Logistics” stages
Chemical Substances
4.Employ procurement practices that facilitate the achievement of targets at the “Product Planning and Design” stage
Biodiversity
5.Conduct biodiversity assessments at resource extraction and harvesting sites
4.Operations
Targets
Overall
1.Conduct environmental assessments (including biodiversity assessments)
Climate Change
2.Reduce greenhouse gas emissions by an absolute value of 30% from the fiscal 2000 level
Resources
3.Achieve an absolute reduction in waste from sites of 50% from the fiscal 2000 level
4.Increase the waste recycling rate Groupwide to more than 99%
5.Achieve an absolute reduction in the total volume of water used of 30% from the fiscal 2000 level
Chemical Substances
6.Manage designated chemical substances (Class 1-4) in accordance with prescribed regulations
Class 1: Prohibit use
Class 2: Eliminate by specified date
Class 3: Reduce amounts released and transferred
>Reduce amounts of Class 3 designated substances, including volatile organic compounds
(VOCs) released into water and transferred as waste or into sewers by 14% from the fiscal 2008 level
>Reduce emissions of VOCs into the atmosphere by 50% from the fiscal 2000 level
Class 4: Comply with relevant laws and regulations and ensure adequate control over use
Biodiversity, Contribution to Local Communities, Others
7.Promote environmental contribution activities that respond to the needs of local communities
5.Logistics
Targets
Climate Change
1.Reduce CO2 emissions from logistics by 14% from the fiscal 2008 level
Resources
2.Reduce waste from packaging for incoming parts by 16% from the fiscal 2008 level
6.Take Back and Recycling
Goals
Respecting the principle of extended producer responsibility (EPR), we will continue to promote the development and efficient operation of low-environmental-impact recycling systems suited to the needs of local communities. At the same time, we will actively advance the collection and recycling of end-of-life products. With the aim of reducing resource use, we will step up efforts to design products that are easy to recycle, as well as to promote the establishment of legislation that enshrines the concept of individual producer responsibility (IPR) and the building of an infrastructure for recycling Sony products.[8]


Conclusion
In the article ‘Sony on the Importance of Being Green’, Sony Europe's General Manager, Environmental Communications - Emily Young – says that Sony sees “‘green issues’ and sustainability as a critical part of our company ethos and activities. The main aim of our sustainability activities is to both minimize our impact on the environment (which includes tough targets to reduce waste and energy), as well as to demonstrate that technology can be an important part of the solution to climate change issues and how we, as a technology company, can help with finding solutions – thus having an overall net positive impact as a company.”[9] While it is clear that Sony has noble intentions and a history of environmental stewardship, only time will tell if they can truly reach a zero carbon company by 2050. It is still unclear what and if Japan will have lasting long-term effects from the recent earthquake and subsequent tsunami. According to prime minister Naoto Kan, “Japan is facing its worst crisis in the 65 years since the war.”[10] Despite this many are already predicting the strong return of Japan and the potential economic revival that may take place in Japan when this is all over. Only time will tell.

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Friday, March 4, 2011

Severn Trent - A Case Study in Sustainability


http://www.decal-orations.com/tshirt/171789-severn-trent.html

Introduction
The World Business Council for Sustainable Development (WBCSD) defines Corporate Social Responsibility (CSR) as “the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large”[1] Wilson of Rio Tinto adds that “debate about corporate social responsibility may be of recent origin but caring, responsible management is certainly not”[2] Wilson goes on to explain that, “in many companies there has long been recognition that there is more to business than simply short-term profit. Indeed, in complex and sensitive businesses, such as those in the extractive industries, the creation of long-term shareholder wealth is incompatible with a purely near-term profit focus.”[3]

CSR: Benefits and Opportunities
There can be many good benefits for companies looking to get into CSR work. Authors Charles Holliday, Stephen Schmidheiny, and Philip Watts in their book Walking the Talk: The Business Case for Sustainable Development, state that, companies find that “good community relations can help raise awareness of unforeseen issues or problems, avoid unnecessary conflicts and hostility, create a better working environment for employees from outside the area, recruit employees from within the area, and build business links with people and companies in the area.”[4]
According to SustainAbility, an independent think tank and strategic consultancy headquartered in London, some of the benefits of CSR are “brand value and reputation, improvements in human capital, and revenue generation, particularly in large and as yet undeveloped markets.”[5] When assessing shareholder value associated with a company's demonstrations of social responsibility, SustainAbility concluded that companies that ‘flaunt or ignore human rights run a real, demonstrable risk of seeing their share price drop as a direct result. Whereas community initiatives have a weak, yet positive, impact on shareholder financial performance’[6]
The British government writing through the www.businesslink.gov.uk - the official government website for businesses of all sizes in the UK – added these benefits for companies practicing CSR:
  • “A good reputation makes it easier to recruit employees.
  • Employees may stay longer, reducing the costs and disruption of recruitment and retraining.
  • Employees are better motivated and more productive.
  • CSR helps ensure you comply with regulatory requirements.
  • Activities such as involvement with the local community are ideal opportunities to generate positive press coverage.
  • Good relationships with local authorities make doing business easier.
  • Understanding the wider impact of your business can help you develop new products and services.
  •  CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognise this and are more willing to finance you.”[7]


Case Study: Seven Trent
As an environmental services company, Severn Trent is a “leading provider of water, waste management, and utility services. The Group, which includes Severn Trent Water, Biffa Waste Services, and Severn Trent Services, employs more than 14,000 people, of whom 9,000 are based in the UK.”[8] Severn Trent became “involved with the Cromford Venture Centre in Derbyshire, UK, following a visit in 1995…The Venture Centre was founded on the belief that young people respond positively to opportunities for self-development if those opportunities are offered in surroundings that provide stimulus and the challenge of new activities and experiences…Thus Severn Trent decided to build a strong relationship with the Center, making an effort to understand its objectives and needs and to involve Severn Trent employees as fully as possible at every opportunity.”[9]

Conclusion
It is clear that companies have a great deal to offer the communities and world that they live in. Corporations, like governments and individuals, can be a powerful example of positive and substantive change. As the WBCSD concludes, “The strong and committed relationship between the company and the Severn Trent/Cromford Venture Centre has been crucial to the project's effectiveness and the provision of residential places to thousands of young people, who have been given the opportunity to help themselves - a vital element of everyone's progress in life.”[10] Such partnerships among corporations and the community foster not only a positive business model as well as customer loyalty and reputation, but the application of CSR offers a positive change in the social and environmental fabric of the community which is ideal for all stakeholders.


[1] http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=MTE0OQ [2] Wilson, R. (2001) 'Corporate Social Responsibility: Putting the Words into Action', speech made at the Conference on Corporate Social Responsibility, Royal Institute of International Affairs, Chatham House, London, 16 October 2001. [3] Ibid. [4] Holliday, Charles O. Jr., Stephen Schmidheiny, Philip Watts. Walking the Talk: The Business Case for Sustainable Development. UK: Greenleaf Publishing Limited, 2002. Print. Page 112-113. [5] Ibid. Page 112-113. [6] SustainAbility/UNEP (United Nations Environmental Program) (2001) Buried Treasure: Uncovering the Business Case for Corporate Sustainability (London: SustainAbility). [7] http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075408491&type=RESOURCES [8] http://www.wbcsd.org/plugins/DocSearch/details.asp?DocTypeId=-1&ObjectId=NTUw&URLBack=result.asp%3FDocTypeId%3D-1%26SortOrder%3Ddoctype+asc%26CurPage%3D9 [9] Holliday, Charles O. Jr., Stephen Schmidheiny, Philip Watts. Walking the Talk: The Business Case for Sustainable Development. UK: Greenleaf Publishing Limited, 2002. Print. Page 115-116. [10] http://www.wbcsd.org/plugins/DocSearch/details.asp?DocTypeId=-1&ObjectId=NTUw&URLBack=result.asp%3FDocTypeId%3D-1%26SortOrder%3Ddoctype+asc%26CurPage%3D9
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Monday, February 28, 2011

TEPCO - A Beacon of Hope or a Corrupt Corporation


http://green.autoblog.com/2008/08/13/tokyo-to-get-200-quick-charge-ev-stations-with-plans-for-more/

Introduction
The Tokyo Electric Power Company (TEPCO) is one of the largest energy companies in the world. TEPCO was established “in 1951 as an electric power supplier to the metropolitan Tokyo area. Over the past half century, during which Japan went through large changes, such as the post-war high growth period, two major oil crises, and the collapse of the bubble economy, we have been steadily supplying our customers with electricity, which is essential to modern society,”[1] says TEPCO president Masataka Shimizu. Well known throughout Japan and around the world, TEPCO is a global powerhouse in the energy sector. More than just an electric company, TEPCO has become famous over the years for its corporate social reconcilability initiatives as well as its scandals.

CSR at TEPCO
Authors Charles Holliday, Stephen Schmidheiny, and Philip Watts wrote a book entitled Walking the Talk: The Business Case for Sustainable Development, in which they use TEPCO as a case study for corporate social responsibility. According to the authors, TEPCO sees global warming “as a pressing energy issue”.[2] As one of the largest energy companies in the world TEPCO is a large emitter of carbon dioxide into the atmosphere. Back in March 2001, TEPCO set a target to reduce CO2 emissions by approximately “20% (from 1990 levels) to about 0.31 kg CO2 per kWh in 2010, using a host of different measures based on a diverse and complementary energy mix. 'We are making every effort to guarantee a stable supply of high-quality electricity, including the promotion of an optional mix of energy sources by balancing hydroelectric, thermal, and nuclear power, and also renewables as supplemental sources', says TEPCO President Nobuya Minami; 'Nuclear power, which does not emit CO2or pollutants during generation, plays an important role in countering such environmental issues as global warming.'”[3]

Making nuclear energy the centerpiece of TEPCO’s alternative energy solution helped TEPCO reduce CO2 emissions, according to TEPCO “The optimal use of its nuclear power has alone accounted for 92 million tonnes of the total 134 million tonnes of CO2 emissions cut during 2000.”[4]

Scandal and Ethics
While some may have celebrated TEPCO’s efforts in CSR and greenhouse gas emmissins in the early years of the new century, by September of 2002, the story had changed significantly. In an article posted on CNN.com in September 2, 2002, “The president, vice president and chairman of Japan's largest utility are quitting following a nuclear safety scandal, along with two advisers.”[5] The resignations followed the announcement that Tokyo Electric Power Co. (TEPCO) admitted that it “may have failed to accurately report cracks at its nuclear reactors in the late 1980s and 1990s.”[6] The article goes on to detail that “TEPCO is suspected of falsifying 29 cases of safety repair records.”[7] While all nuclear facilities should be monitored, TEPCO’s nuclear reactor “is the world's largest, and will be shut down temporarily along with four others for urgent safety checks. Japan's nuclear power industry provides a third of the country's electrical power, and has been criticized for other accidents in recent years.”[8]

As negligence turned to willful deceit, the corporate social responsibility of TEPCO came more and more into question. By September 7th 2002 it had surfaced that division chiefs at TEPCO had knowingly “ordered the falsification of reports relating to structural problems at nuclear plants”[9] for years.
Conclusion







In September 2010, TEPCO announced that it had established its "2020 Vision: Medium to Long-term Growth Declaration."[11] The above graphics depict some of the goals that the 2020 vision has in the years to come. According to press release for 2020 Vision, we see many changes taking place in recent years. In addition to “changes in the social structure caused by the rapid aging of society due to a declining birthrate, decreasing population, and changes in the industrial structure, major changes are also occurring in relation to the energy and environment situation, as can be seen in the development of energy-saving technologies, the global warming issue, increasing energy consumption particularly in Asia.”[12] While there is little doubt that changes have indeed occurred in recent years, it is not clear if TEPCO has learned its lesson and has true ambitions for CSR and sustainability for the future. Only time will tell.
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