2008 sustainability report · 2017-07-25 · this sustainability report, the first from sony...

2008 Sustainability Report

Our first Sustainability ReportThis Sustainability Report, the first from Sony Ericsson, is a an overview of our sustainability initiatives. Sony Ericsson has strived to take a leadership position in the mobile phone industry, driving sustainable improvements in our products, manufacturing, logistics and supply chain.

In this report, we present our achievements to the end of 2008, share our future vision and provide a historic overview to put our recent work into long term perspective. The foundation of the report is the integration of our parent companies’ research and targets into our own strategy. Sony Ericsson benefits from the fact that its parent company has the same principle of focusing on major environmental benefit when deciding on their direction.

In the production of this report Sony Ericsson took the decision to use the Greenhouse Gas (GHG) Protocol1 to calculate CO2 out of kilowatt hour (kWh) as we consider it to be the most comprehensive and suitable standard available for our current business situation. We now report GHG emissions in accordance to Scope 1 and Scope 2 of the Protocol and commenced measuring parts of Scope 3 as emissions from transportation.

If you have any comments or suggestions to this report, we are happy to get feedback at [email protected]

We also would like to thank all the people that have contributed to make this first report come true. Information on our ongoing sustainability work can be found at www.sonyericsson.com/sustainability

About Sony EricssonSony Ericsson, a 50/50 joint venture of Sony Corporation and Telefonaktiebolaget LM Ericsson, is a provider of mobile multimedia devices, including mobile phones and accessories. We employee around 9,000 people and have operations in over 80 countries. In 2008, volume and sales were 97 million units and €11.2 billion respectively.

©Sony Ericsson Mobile Communications AB, 2009. All rights reserved.

The liquid identity logo, GreenHeart and the GreenHeart logo are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB. Sony is a trademark or registered trademark of Sony Corporation. Ericsson is a trademark or registered trademark of Telefonaktiebolaget LM Ericsson.

Other products and company names mentioned herein may be the trademarks of their respective owners. Any rights not expressed granted herein are reserved. Subject to change without prior notice.

Sony Ericsson Mobile Communications AB, SE-221 88 Lund, Sweden

1 Greenhouse Gas Protocol, a registered trademark of the Greenhouse Gas Protocol Initiative. http://www.ghgprotocol.org/

2008 Sustainability Report | 1

Table of ContentsOur first Sustainability ReportAbout Sony EricssonA word from our President ......................................................................................................................................... 2

Committing to reduce carbon ........................................................................................................................... 3The Poznan Communiqué ................................................................................................................................. 3

Governance ................................................................................................................................................................ 4Forging a Sustainability Policy .......................................................................................................................... 4Raising awareness ............................................................................................................................................ 4Certifying our environmental programme.......................................................................................................... 5

The scope of this Report ............................................................................................................................................ 5Assessing impact across the Product Life Cycle ..................................................................................................... 6Controlling harmful substances ................................................................................................................................. 6

Substances of concern ..................................................................................................................................... 7Brominated flame retardants (BFR) ......................................................................................................... 7Polyvinyl chloride (PVC) .......................................................................................................................... 8Antimony, beryllium, phthalates and remaining use of BFR ................................................................... 8

Working with our suppliers ................................................................................................................................ 8Verifying the supply chain ................................................................................................................................. 8

Material declaration and database ......................................................................................................... 8Benchmarking our phones ...................................................................................................................... 9

Communicating to the world ............................................................................................................................. 9Chargers and power consumption .......................................................................................................................... 10The impact of transport ........................................................................................................................................... 11Minimising our carbon footprint .............................................................................................................................. 11

The carbon footprint of our own activities ...................................................................................................... 11Summary of Sony Ericsson CO2 emissions .......................................................................................... 11Reduction of Sony Ericsson CO2 emissions ......................................................................................... 11

Our largest factory........................................................................................................................................... 12Carbon footprint of the Beijing Factory ................................................................................................ 12

The carbon footprint of our offices ................................................................................................................. 12Carbon footprint of Sony Ericsson offices ............................................................................................ 12

The impact of business travel ......................................................................................................................... 13GreenHeart™: Making product development environmentally sustainable .......................................................... 13The importance of product take-back ..................................................................................................................... 14

Our Global Environmental Warranty ................................................................................................................ 14Being WEEE compliant ................................................................................................................................... 14Working together ............................................................................................................................................. 14

Our approach to human rights ................................................................................................................................. 15The Sony Ericsson Code of Corporate Social Responsibility ......................................................................... 15Ensuring our suppliers are compliant .............................................................................................................. 15Mining and human rights ................................................................................................................................ 15

Health as a crucial issue .......................................................................................................................................... 16Background on nickel ..................................................................................................................................... 16Explaining the Specific Absorption Rate (SAR) ............................................................................................... 16

Supporting the global community ........................................................................................................................... 17The Millennium Villages project ....................................................................................................................... 17Co-developing solar chargers ......................................................................................................................... 17

Appendix ................................................................................................................................................................... 18Data conversion from kWh to CO2 .................................................................................................................. 18Data accuracy ................................................................................................................................................. 18Additional data from our Beijing factory.......................................................................................................... 18

Other input ............................................................................................................................................ 18Chemical consumption ......................................................................................................................... 18

2 | 2008 Sustainability Report

Since the start of the joint venture between Sony and Ericsson in 2001, Sony Ericsson has strived to maintain the highest standards in our approach to sustainability. Sony Ericsson considers sustainable development and

production to be one of the most important challenges for the future and one that demands immediate action from responsible manufacturers. We have implemented a life-cycle approach to product development that takes into account design, supply chain, manufacturing, product use and end-of-life treatment of all our products.

Sony Ericsson aims to exceed minimum industry standards and has taken a leadership position in a number of areas. Our decision to lead the way on phasing out unwanted substances our efforts to drive energy efficiency and our focus on recycling give us a very strong foundation to strive for a leadership position in the mobile telecommunications industry.

In 2001 we removed brominated flame retardants from printed circuit boards, cables and casings and we have since worked with our manufacturing partners to continue to phase out unwanted substances. Since 2004, all of our new mobile phone models except one were compliant with the EU directive of Restriction of the use of Hazardous Substances (RoHS), which came into force in 2006. In fact, we have gone beyond the RoHS directive, and actively removed a number of additional unwanted substances from our manufacturing. We have phased out polyvinyl chloride (PVC) from our products, and from 2007 all new products have been PVC free.

In the seven years that Sony Ericsson has been operating we have maintained a rigorous approach to ensuring that our supply chain meets the same standards. All Sony Ericsson suppliers must undergo assessment to ensure compliance with substance requirements, and supplier audits verify that suppliers have procedures in place to control unwanted substances in their own supply chain. The importance of social responsibility is not limited to activities within our own organisation and within the supplier

social responsibility code our suppliers are expected to provide a safe workplace for employees, respect basic human rights and apply ethical standards in all business dealings. Sony Ericsson inspects all first level suppliers to ensure these requirements are realised.

From 2008 Sony Ericsson started measuring greenhouse gas emissions in accordance to the GHG Protocol2. This includes centralised collection of data on energy use in Sony Ericsson offices and manufacturing sites around the world. We also measure staff travel and logistics. This report includes details of these measurements and detailed targets for reduction of our carbon footprint.

We have focused on low energy consumption chargers since the start of the joint venture in 2001 and are supporting the industry’s adoption of a standardised charger interface. We will introduce chargers and phones with this interface well ahead of the desired industry timeline. Our portfolio of chargers is already one of the best in the industry in terms of efficiency and energy consumption.

Sony Ericsson’s GreenHeartTM concept study in 2008 produced a prototype phone, charger, user guide, and packaging with reduced environmental impact. The handset was built with fully sustainable materials, the optional charger had minimal no-load power and the concept offered reduced packaging with the elimination of paper manuals. We are adopting elements of the GreenHeartTM prototype into our portfolio and have launched GreenHeartTM products to the market during 2009.

A Word from our President

2 Greenhouse Gas Protocol, a registered trademark of the Greenhouse Gas Protocol Initiative. http://www.ghgprotocol.org/

Hideki Komiyama President, Sony Ericsson Mobile Communications


Committing to reduce carbonSony Ericsson has changed its climate related goals from intensity-based to absolute targets. Intensity-based targets, whereby emissions are measured as a ratio of economic activity, are considered fallible as emissions will increase with production. Absolute targets are independent of production levels, and we believe are the only way forward to bring about an overall decrease in a company’s carbon emissions.

Sony Ericsson set aggressive, absolute targets:

By 2015 reduce the total greenhouse gas •emissions from the full life cycle of Sony Ericsson’s products by 15% (based on 2008 year levels)

By 2015 reduce the total greenhouse gas •emissions from Sony Ericsson’s internal activities by 20% (based on 2008 year levels)

Sony Ericsson’s impact on the global climate will be continuously measured using the GHG Protocol – A Corporate Accounting and Reporting Standard.

Under our own Global TakeBack program, our goal is to collect one million phones per annum before the end of 2011. This programme complements existing systems where industry and charities collect high volumes of mobile phones for recycling. For Sony Ericsson, the most important objective is to simplify the process for consumers by offering accessible recycling locations, in retail locations and by freepost,

and straightforward information. Two major challenges in measuring collections are that mobile phones are mixed with other small electronics and IT equipment, and that mobile phones are often collected for refurbishment and reuse, which is not reported in collection numbers. Consequently it is impossible for any manufacturer to know how many of their many phones are still on the market and what proportion is being collected by recycling.

The Poznan CommuniquéSony Ericsson is committed to tackling the issues causing climate change. While we continuously work on minimizing the energy consumption of our products, we believe that all parties in our industry need to work together towards a sustainable future. Sony Ericsson is a signatory of the Poznan Communiqué on Climate Change as well as the Bali Communiqué signed in 2007. The Poznan Communiqué was signed by 140 companies during the United Nations Climate Change Conference (COP 14) in December, 2008 in Poznan, Poland. The business leaders of these global companies confirmed the necessity to ensure and cooperate to reduce greenhouse gas emissions to mitigate climate change.

GovernanceForging a sustainability policySustainability was a key consideration during the formation of the joint venture between Sony and Ericsson with best practice selected from each parent company. There is continuous dialogue and cooperation between Sony Ericsson and its parent companies on the subject of building a more sustainable business, and Sony Ericsson attends regular meetings with both parent companies to receive guidance and provide input in this regard.

From the beginning of the joint venture, decisions on strategy, policy, goals and budget have been taken in the Executive Committee of Sony Ericsson. Sustainability is treated as essential to normal business practices and as an integrated part of general business. Sustainability-related activities are included in regular business processes so that business considerations and sustainable working practices are aligned. To learn more about our Sustainability Policy, please visit www.sonyericsson.com/sustainability

Sony Ericsson’s sustainability activities are driven and coordinated by the Corporate Sustainability Office. This team of five people, based in Sweden, provides expertise, strategy and guidance to operational activities which are all conducted by the respective line function. Within the line organisations, there is a virtual network of full


time, dedicated coordinators driving activities such as the environmental design review of all product projects. Area experts include sustainability considerations as a part of their overall responsibilities so, for example, an expert on power sources would investigate potential new phone power sources, including current and future requirements, as an integral part of a study on power sources.

Raising awarenessIn 2007 the Sony Ericsson Board of Directors initiated a two-year cross functional program to raise awareness inside the company of our sustainability initiatives. The Sustainability Program consisted of seven cross-functional projects covering the whole life cycle of a product. An interim sustainability steering group with representation from top management and line managers responsible for various projects was created under the chairmanship and sponsorship of Sony Ericsson’s President. The program closed at the end of 2008 as planned and the projects and activities where handed over to the line organisations. Examples of the success of the program were the GreenHeart™ concept phone and Global Environmental Warranty announced in September 2008.3

The Sony Ericsson Sustainability Program: Seven projects across the product life cycle

Certifying our environmental programThe Sony Ericsson management system has environmental and social issues integrated into the normal business processes and procedures and this is audited and certified by Det Norske Veritas (DNV)4 in accordance with ISO 9001:20005.

All manufacturing sites and suppliers are required to have systems with an expanded scope i.e. meeting the ISO 14001:20046 standard. This is also valid for our own majority-owned manufacturing facility Beijing Sony Ericsson Potevio Mobile Communications Co., Ltd. (BMC). BMC was initially certified for ISO 9001 in 1996 and for ISO14001 in 1999. The present certification by DNV for both of these standards is valid until 2011. In the first quarter of 2009, BMC will be certified for OHSAS 18001:20077 by DNV valid until 2012. In 2008 BMC is also included in the E-TASC8 tool.

3 Press release “Sony Ericsson expands its sustainability credentials with the launch of its environmental warranty and the GreenHeart™ phone” by Sony Ericsson, 24 September 2008 http://www.sonyericsson.com/cws/corporate/press/pressreleases/pressreleasedetails/sustainabilityfinal-20080924

4 http://www.dnv.com/5 http://www.dnv.com/services/certification/management_systems/quality/iso9001/6 http://www.dnv.com/services/certification/management_systems/environment/iso14000/index.asp 7 Occupational Health and Safety Advisory Services (OHSAS) http://www.dnv.com/services/certification/management_systems/

healthandsafety/ohsas18001/index.asp 8 E-TASC is a web based supply chain risk management tool developed under sponsorship of GeSI/EICC. http://www.gesi.org/index.

php?article_id=43

Manufacturing Control

Carbon Footprint Reduction

Awareness and Engagement

End of LifeGlobal TakeBack

Greenheart™ Products

Communication

Production

Use

Supply Chain ControlSupply

Design


The scope of this ReportThe total impact from Sony Ericsson’s business activities is included within the Life Cycle Assessment (LCA) of a mobile phone. This is calculated as part of the manufacturing stage; for example, the energy used in offices and for travel over a year is allocated to the phones produced that same year. For each phone, the impact from just our own activities totals around 0.85 kg CO2-eq/phone9 and for the total impact 3.6%. This is why Sony Ericsson has focused more attention on reducing the CO2 impact of products in use than from our own internal activities and we have now started reporting all of our CO2 impact in line with the GHG Protocol.

This report starts with an updated Life Cycle Assessment (LCA) conducted in 200810 to show Sony Ericsson activities to date and what areas are important in the current life of a mobile phone. The first two sections describe how we are working to control chemical substances and explain where we are in the process of removing all unwanted substances from our products. The third section presents life cycle energy savings, primarily covering our work on phone chargers and product logistics and presents the direct impact of our internal activities in line with the GHG Protocol. Here we show that, although internal activities are important for several reasons, the impact from these is small compared with the overall impact of the products.

In the next section we explain how we work with our supply chain and monitor working conditions for all people involved in the life cycle of a mobile phone, from mining operations to the end of its useful life. The report closes with how we sponsor research in health and how we support organisations that use technology to improve the life of some of the poorest people on this planet.

The starting point, factual base of the company’s focus areas, is based on studies conducted by Ericsson before the joint venture was started. In parallel, input was taken from the Sony strategy on environment at the time called Green Management 2005, where more details and targets where set.

Based on these studies, management commitment and parent company direction three long term focus areas were selected:

Unwanted Substances – focus on substances with potential issues in recycling or landfill•

Energy Savings – reduction of life cycle carbon footprint•

Supply Chain Control – primarily working conditions in the supply chain•

9 CO2 equivalent per phone10 Master thesis “Life cycle assessment of a mobile phone a model on manufacturing, using and recycling” by Frida Bergelin, Uppsala University


Assessing impact across the product life cycleSony Ericsson has commissioned a Life Cycle Assessment (LCA) study collecting data for the phone model W890. The study was carried out as a master thesis at Ericsson Research during spring 2008 and includes the extraction of raw materials, component manufacture, inbound and outbound transportation, utilisation and end-of-life treatment for a mobile phone with a 3.5-year life span. The report is in the process third party verification in line with ISO 14040. Input data includes several LCA studies conducted on parts of the business and assemblies by Sony and parts suppliers.

The CO2 impact of Sony Ericsson offices and travel are also included, but separated on a yearly basis and included as part of the phone production overhead. The LCA shows that a mobile phone with an expected 3.5-year lifespan produces a total of 23.5 kg of CO2, equivalent to driving approximately 150 km in a typical family car.

The total impact of a mobile phone is equal to 0.08% of the average person’s CO2, i.e., less than 0.1% of the CO2 impact of a global average person is from their mobile phone. Note that this includes all materials extraction, production, transport, charging, and waste handling.

For the LCA, the framework for how to conduct life cycle assessment and write an LCA report as stated in ISO 14040 and 1404411 12 has been followed. For this report, we have focused on the carbon footprint results, although the LCA evaluates and calculates many other factors affecting environmental impact.

Often we notice that there are attempts to compare results from different LCA studies. This cannot be done unless the studies have been carried out using the same assumptions and scope. The scope of study and assumptions influence the results to such a high degree that differences between models or manufacturers well may be smaller than first suggested. However, comparing results using the same model gives a good indicator to the success of direction, savings and improvements. This is how Sony Ericsson uses the results from the LCA.

11 ISO 14040:2006 (2006). Environmental management – Life cycle assessment – Principles and framework. International Organisation for Standardisation (ISO).

12 ISO 14044:2006 (2006). Environmental management – Life cycle assessment – Requirements and guidelines. International Organisation for Standardisation (ISO).

Transportation

Utilization

Manufacturing

Materials

End of life

0 1 2 3 4

Climate change [kg CO2-eq./year]

ICLCA results

LCD

SE activities

Battery

Assembly

PWB

PBA

Camera

Std components

0.0 0.5 1.0

Climate change [kg CO2-eq./year]

Totally

23.5 kg

CO2-equivalents

=

150 km

in family car[156 gCO2/km]

1.5 2.0 2.5


Controlling harmful substancesIn this section we show that we have implemented and fully support precautionary principles defined in the United Nations’ Rio Declaration on Environment and Development13. We follow laws and regulations such as the RoHS (Restriction of the use of certain Hazardous Substances) directive and have initiated action against substances that we consider unwanted in our products from our own environmental perspective and which are not covered by current regulation. As a result of this proactive action, in March 2008 Greenpeace, in its Green Electronics Survey14 recognised the T650i and P1i as the most environmentally friendly phone and PDA sold in 2007.

There are several steps in the process of phasing out an unwanted substance:

Study1. – Before any substance can be phased out the replacement substances have to be evaluated from a capacity, quality and environmental point of view. These studies are conducted by experts in the environmental coordinators’ team in cooperation with sustainability office and suppliers.

Pioneer2. – The launch of the first product after the given substance has been phased out. The first pioneer product is developed and the replacement material must meet all the same requirements and tests as earlier components or materials. It is essential that product quality and consumer experience are not negatively impacted by change.

Phase Out3. – Following launch of the pioneer product, replacement is rolled out platform by platform and component by component. The phase out target date is set at the end

of this phase and is the final date when the phased out substance is completely prohibited in the product.

End of production4. – The final phase is end of production. After this time, the substance is no longer used in the applications defined in the phase out plan.

Depending on the life cycle of different products, the time between the target set for phase out and the end of production may differ. For mobile phones, technical development and changes in platforms make the time relatively short, while chargers and headsets have much longer life cycles, so the time before end of production is longer. An example of this is PVC in cables, which takes longer to phase out than PVC in phones.

Substances of ConcernBrominated flame retardants (BFR)One of the substance categories that have been highlighted for concern by the media, authorities and environmental organisations is brominated flame retardants (BFR), compounds which are used to reduce the risk of fires. Some types of BFR are banned in regulations such as the RoHS directive, while others are still allowed. At Sony Ericsson we decided to use alternatives to all types of BFR for fire protection, the main reason being the risk that BFR become dioxins in uncontrolled incineration15. The very first Sony Ericsson-branded phone, the T68i, which launched in 2002, was free from BFR in boards and casings, and Sony Ericsson was the first manufacturer to offer a full range of products, including accessories, which were BFR-free (in boards, cables and casings). It is important to note that 99% of the use of BFR was in cables casings and boards; the remaining small

13 http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=78&ArticleID=116314 http://www.greenpeace.org/raw/content/international/press/reports/searching-for-green-electronics.pdf15 WHO, 1998. Environmental Health Criteria 205: Polybrominated dibenzo-p-dioxins and dibenzofurans, World Health Organisation,

Geneva, 1998.

Substance Phase-out

0%

25%

50%

75%

100%

2001 2002 2003 2004 2005 2006 2007 2008

Bromine Free

Lead Free

PVC Free


percentage is in a few components where the phase-out is ongoing as described above.

Polyvinyl chloride (PVC)We have taken action to remove Polyvinyl Chloride (PVC) from our phones because PVC releases hydrochloric acid and dioxins when burnt. The dioxins are highly toxic and accumulate in animal fats, especially in fatty fishes such as salmon, and are known mutagens and carcinogens which can also cause serious skin diseases. Sony Ericsson has worked hard to find alternatives to PVC and now all cables, except one legacy charger, are free from PVC. Since 2007 all new Sony Ericsson products have been PVC free and, although our original goal was to finalise the phase out of PVC during 2008, changes in the market meant that the one legacy charger is still being used. The final date of production for this will be in 2009.

Antimony, beryllium, phthalates and remaining use of BFRWe are currently finalising the phase-out of antimony, beryllium, phthalates and the small remaining use of BFR. Many of these substances are considered very hazardous for both human health and the environment and all of them cause problems in the waste treatment or recycling of the product.

Antimony is mainly used in combination with BFR to increase fire protective properties. This use has been phased out and antimony trioxide is no longer used in any major part of our phones. There are other applications such as moisture protection and in varistors (variable resistors which protect circuits against excessive variants in current). For moisture protection, alternatives have been developed and replacement is well on the way but for varistors, no alternatives have been identified and this use is exempted from the phase out plan until replacement materials have been identified.

Beryllium was used in copper for connectors of various sorts. All new Sony Ericsson products are now beryllium-free.

Most phthalates were phased out along with PVC because they are used in combination. However, we discovered a few components where phthalates are used with other plastics. These have been replaced and all new Sony Ericsson products are phthalate-free.

As mentioned, we have already phased out BFR in all major usage of our products. However, BFR is sometimes added in very small amounts to some electrical components such as resistors and capacitors. We are on track to becoming the first mobile phone provider that is completely BFR-free, but because of re-use and long life cycles of standard components, BFR cannot be fully avoided for the time being.

Working with our SuppliersAt Sony Ericsson we are using research reports, studies from authorities and public concern to gather new information regarding the impact of substances used in our products. To be able to reach our environmental targets, we work together with our components suppliers to identify parts where substances of concern are used and to phase out these substances from our products. We believe that to do a good job and reach the goals we have set, we have to work in close cooperation with partners and suppliers, providing support, information and education in matters related to chemical management and the impact of substances to the environment.

To inform and help specialist suppliers on matters that affect them, such as charger suppliers on the issue of standby power and efficiency, we arrange dedicated meetings to discuss and explain our requirements and plans. These sessions are held with individual suppliers, on site when needed, where we discuss in detail the challenges and potential solutions to reach a common goal. These face-to-face meetings build mutual trust and confidence, helping both us and our suppliers to develop our knowledge of the products we are developing.


Our products are made up of a wide variety of components sourced from global suppliers. We trade in a global market where our products can be found in most parts of the world, however all Sony Ericsson products meet the same stringent environmental requirements. The Sony Ericsson List of Banned and Restricted Substances16 is used to ensure the use of the best possible components and materials for the manufacturing of all our products.

Verifying the supply chainMaterial declaration and databaseSony Ericsson has introduced a software-based system to obtain full material declarations for all components and parts in its products, including all chemical substances in the components. This system is called COMET (Compliance On Materials and EnvironmenT):

Sony Ericsson requires its suppliers to provide •full disclosure of the materials used in every component that it purchases.

Material declarations are provided in an industry •standard template (IPC 175217) that issued to suppliers each time a new part is purchased.

Once received from suppliers, material declarations •are uploaded into a Sony Ericsson database.

The system Sony Ericsson uses is fully automated •and provides details of the substances used in its products, ensuring compliance with legal requirements as well as company-wide commitments to phase out unwanted substances.

All phones and accessories developed by Sony Ericsson are screened and analysed for their chemical content in third party laboratories before being released for mass production. Together with its COMET material content database (two screens of which are shown below) and its own laboratory testing, Sony Ericsson ensures that its products meet its stringent environmental requirements.

Benchmarking our phonesSince 2005 Sony Ericsson has conducted annual benchmark studies of competitors’ phones. These are analyzed by an independent laboratory to verify the status of substance phase out, while chargers are tested internally to determine efficiency and no-load loss. As a result of these studies, Sony Ericsson believes it is a pioneer in the electronics industry in phasing out unwanted substances, developing energy efficient chargers and supply chain sustainability.

Communicating to the worldThrough its Environmental Declarations, Sony Ericsson invites interested parties to request factual information about its products. Environmental Declarations can be downloaded from the company website for every phone, to inform end users on environmental aspects such as material content, energy consumption, batteries, packaging and recycling.18

16 Sony Ericsson list of Banned and Restricted Substances www.sonyericsson.com/environment17 http://www.ipc.org/18 www.sonyericsson.com/environment


Chargers and power consumptionIn the LCA of a mobile phone that was conducted by Ericsson in 1995, more than one third of the total energy life cycle impact of a mobile phone came from the charger; for example, when electrical products are switched off but left in the wall socket, most of them consume small amounts of energy known as no-load power consumption.

When Sony Ericsson was established in 2001, most of the company’s chargers drained 2 W in no-load power consumption. By 2008, the average no-load power consumption from Sony Ericsson chargers was 0.15 W, a reduction of more than 90%. Sony Ericsson has a goal to decrease its average no-load power consumption to under 0.1 W in the 2010 product portfolio, which supports its overall goal on CO2 reduction for each product.

Sony Ericsson phones and accessories are sold with the same chargers worldwide. The company introduced a new charger as early as 2001 which would have met the 2004 EU Code of Conduct (CoC)19 that recommended 0.3 W as the no-load power consumption. Since 2003 all Sony Ericsson phones sold globally are supplied with chargers that meet the EU voluntary CoC for power supplies, as well as the requirements on Energy Star Level 420.

Sony Ericsson has participated in the development of a rating system for the energy consumption of mobile phone chargers as part of the Integrated Product Policy (IPP) pilot programme of the European Commission21. All major mobile phone manufacturers took part in this programme with the aim to develop a system for rating the energy efficiency of chargers in no load mode. All of Sony Ericsson’s chargers, except model BST-60, have been rated as four star chargers and our GreenHeart™ concept charger is rated as a five star charger, with a no-load power consumption of 0.0035W.

0.0

0.3

0.6

0.9

1.2

1.5

2001

W

Volume (GSM/UMTS)

Total Portfolio No-load Power

Average No-load Power

EU Code of Conduct

IPP****

Average No-load Power

2002 2003 2004 2005 2006 2007 2008

19 EU code of conduct for external power supplies http://re.jrc.ec.europa.eu/energyefficiency/20 USA EPA energy star program http://www.energystar.gov/21 EU Integrated Product Policy project (IPP) http://ec.europa.eu/environment/ipp/mobile.htm

No-load power consumption score chartThe more stars, the more energy efficient

★★★★★ ≤ 0.03 W

★★★★ > 0.03 to 0.15 W

★★★ > 0.15 to 0.25 W

★★ > 0.25 to 0.35 W

No Stars > 0.5 W

★ > 0.35 to 0.5 W


The impact of transportSony Ericsson collaborates with logistics companies to reduce the impact of transport on its overall carbon footprint. The company has specific environmental requirements when selecting types of vehicles and fuels, requiring carriers to report emissions and to use efficient and optimised means of transport. All transportation is calculated as part of the LCA and included in the impact of the mobile phone. According to the LCA conducted in 2008, approximately 15 % of the total, or 3.7 kg CO2-eq/phone, comes from transportation, with outbound transportation adding up to 90% of the total impact. This is one of the reasons why Sony Ericsson will increase its cooperation with logistics providers and will require more detailed reporting from them in 2009 and beyond. This is also why one of the areas of improvement in the GreenHeart™ concept study of 2008 and implementation in 2009 focuses on reduced packaging and weight of products to be transported, as weight will have a direct proportional saving on CO2 and transport impacts.

Sony Ericsson has been working on minimising and reducing the carbon footprint from its products as well as its own activities, and, as stated earlier, is driving absolute changes rather than relative or intensity-based improvements. That the dramatic change in the economy during 2008 also impacted Sony Ericsson is well known. We were preparing our factory for larger volumes of production and our facilities for increased staff. However, both staff and volume was reduced at the end of the year. Even though savings where made in each facility this resulted in increased CO2 from facilities. At the same time there was also a cut in travel. Even though travel reductions were initiated as a sustainability and resource-saving activity it was greatly expanded throughout the company as a means of achieving cost savings and driving business efficiencies. All in all it resulted in CO2 reduction.

In this report, we present a relative figure to quantify the targets presented earlier and we also declare our new absolute goals, which is how these results will be presented in the future.

Carbon footprint of our own activitiesSony Ericsson has used the GHG Protocol to calculate CO2 out of kilowatt hour (kWh). This year, the company is for the first time reporting GHG emissions in accordance to Scope 1 and Scope 2 of the Protocol and has started to measure parts of Scope 3 as emissions from transportation. Here we focus on the three activities which have the biggest impact on our CO2 emissions and we will extend this as much as possible in future.

Electricity consumption increased for Sony Ericsson manufacturing facilities because a new building was added in April 2008. Office space also increased in Lund, Beijing and Taipei.

Summary of Sony Ericsson CO2 emissions

Source 2007 2008

Factory (BMC)1 17,075,459 21,543,679

Offices2 10,500,191 12,959,411

Travel3 36,850,408 22,887,908

Total CO2 (kg) 64,426,057 57,390,998

1. Electricity2. Electricity, 88% actual data for 2007 and 87% for 2008 scaled to 100%3. Flight fuel

Transportation

Transport mix in CO2-eq Transport distance in Ton/km

Transport distance in CO2-eq

40%

7%

9%

60%

93%

91%

■ Air■ Road

■ Outbound transportation■ Inbound transportation

■ Air■ Road

Minimising our own Carbon Footprint


Reduction of Sony Ericsson CO2 emissions

2007 2008

Produced unit (unit)1 37,446,495 32,148,132

Total CO2 (kg)2 64,426,057 57,390,998

Absolute – reduction 11%

Total CO2/Produced unit (kg) 1.72 1.79

Relative – reduction 104%

1. Sales Item (SI) only2. The total of 12 sites (scaled 100% sites), BMC, Travel

Our largest factoryIn accordance with the GHG Protocol, Sony Ericsson has included reporting emissions from Beijing SE Potevio Mobile Communications Co., Ltd. (BMC), its own factory in Beijing. This is the company’s primary manufacturing site and is jointly owned by Sony Ericsson and local partners China Potevio and Nanjing Panda Electronics Group, two of the largest companies in the Chinese telecommunications industry. The factory was originally set up as a manufacturer of Ericsson products in 1995, and since 2001 it has been an exclusive manufacturer of Sony Ericsson handsets. The factory employs around 10,000 people and produces more than one third of Sony Ericsson’s phones.

Carbon footprint of the Beijing Factory

Input/Output 2007 2008

Employee 12,091 11,269

Area of factory (sq. metre)1 37,610 56,110

Product produced (unit)2 37,446,495 32,148,132

Total electricity (kkWh)1 21,673 27,344

Electricity/Product (kWh) 0.58 0.85

Total CO2 (kg) 17,075,459 21,543,679

CO2/Product (kg) 0.46 0.67

1. A new building was added in April 2008.2. The number of Sales Item (SI), which is a complete product including

a phone, accessories, manuals, leaflets and miscellaneous items.

The carbon footprint of our officesIn 2008 Sony Ericsson began collecting data on energy consumption for its offices. This was done by reviewing energy consumption by kWh for 2007 and 2008 using supplier invoices or facility meters. The data provides an initial picture of the energy consumption for Sony Ericsson offices worldwide. During 2008 the company closed a number of annexes at its site in Lund, Sweden, and moved into a new and more energy efficient building.

Sony Ericsson has a presence in around 80 countries worldwide, although 87% of its employees are housed in 12 sites:

Lund, Sweden1. Beijing, China2. Tokyo, Japan3. Kista, Sweden4. Raleigh, North Carolina, USA5. Munich, Germany6. Taipei, Taiwan7. London, UK8. Singapore9. Hässleholm, Sweden10. Farnborough, UK11. Emmen, Netherlands12.

Carbon footprint of Sony Ericsson Offices

Sites 2007 2008

Employee – company total1 11,238 11,029

Employee – selected 12 sites1 9,914 9,564

Coverage of total employees 88% 87%

Total electricity (kWh)2 29,475,911 36,018,116

Total CO2 (kg)3 9,375,170 11,468,505

Total CO2 (kg) – Scaled to 100%4

10,500,191 12,959,411

1. The year-end headcount totals/A headcount is an employee and onsite consultant

2. Selected 12 sites3. Selected 12 sites4. Estimated – Data of 12 sites covering 88% for 2007 and 87% for 2008

of the whole Sony Ericsson sites is scaled to 100%


The impact of business travelBusiness travel for Sony Ericsson employees accounts for a large part of our carbon emission overview. In 2007, company travel exceeded the amount of CO2 from its BMC factory. Reducing long distance trips by replacing them with alternative meeting opportunities were the key to reducing the company’s total emission from its business activities.

Travel1 2007 2008

Total distance travelled (estimated km)

636,966,400 395,763,200

Total CO2 (kg) 36,850,408 22,887,908

CO2/Employee (kg) 3,279 2,075

1. Scope: Offices in China, Japan, US, Germany, Sweden, Netherlands, Singapore, UK

Travel type Average travel on-way distance (estimated km)

Domestic 1,600 (approx.)

Short 3,200 (approx.)

Long 14,400 (approx.)

In 2007 Sony Ericsson introduced Telepresence, an advanced video conferencing system, at its main global R&D sites such as Lund, North Carolina, London and Beijing. A second phase in 2008 saw the installation of Telepresence units in Tokyo and Munich. The number of hours this system is in use significantly increased from 2007 to 2008. Today Sony Ericsson uses a total of eleven Telepresence systems at its sites worldwide, including China and India. Employee feedback has been positive and many believe Telepresence meetings provide an efficient alternative to face to face meetings.

GreenHeart™: Making product development environmentally sustainable

As a company that puts environmental sustainability at the heart of its product development, Sony Ericsson announced a concept study in September 2008 called GreenHeart™.22 GreenHeart™ looks at the complete product life cycle and includes elements such as bio-plastic housings, recycled plastic keypads, zero charger with 3.5m W standby power, HTML based e-manuals, a game style educational application called ‘Ecomate’ and environmentally-conscious packaging. With GreenHeart™, Sony Ericsson aims to ensure the full life cycle of a mobile phone can be made more environmentally friendly.

During 2009 Sony Ericsson is focusing on further improvements in these areas as well as reducing our energy usage and carbon footprint. The company’s innovative approach to its portfolio is reflected in its approach towards sustainability.

22 http://www.sonyericsson.com/cws/corporate/press/pressreleases/pressreleasedetails/sustainabilityfinal-20080924


The importance of product take-backSony Ericsson recognises the importance of product take-back and recycling, and that it is our responsibility to take care of our products which have reached the end of their life, both with our own solutions and in cooperation with the industry.

We also support initiatives to introduce legislation that addresses this matter and, in many places around the world, we participate in the process to put such legislation in place.

Our Global Environmental Warranty23

To support the Individual Producer Responsibility (IPR), we launched the Global Environmental Warranty in 2008, and started implementing our own global TakeBack collection points around the world, especially where no collection systems already existed.

Under the scheme, we guarantee that all phones received at our designated collection points will be recycled in an environmentally acceptable way.

At our collection points, we first seek to optimise the amount of material that can reasonably be re-used or recycled. The remainder is then disposed of in an environmentally conscious manner and in line with the relevant regulation.

Our Global Environmental Warranty is valid globally, regardless of where the product was originally purchased. For TakeBack information in your location, visit www.sonyericsson.com/recycle.

Being WEEE compliantThe European Union (EU) directive on waste electrical and electronic equipment (WEEE) has been in force since August 2005. Sony Ericsson is fully compliant with the national legislation resulting from this directive, and we are a paying subscriber to the WEEE program in all countries where we are allowed to register.

Sony Ericsson has joined many collection and recycling systems for end-of-life electrical and electronic products. One of our partners is the European Recycling Platform (ERP). Established by Braun GmbH, Electrolux AB, Hewlett Packard and Sony in December 2002, ERP aims to create the most efficient pan-European collection and recycling scheme for consumers, industry and the environment.

Working togetherIn order to make the TakeBack and recycling systems as efficient and effective as possible, we develop and participate in industry-wide systems in many countries around the world.

In the USA, we participate in Plug-In To eCycling24, a partnership between the US Environmental Protection Agency (EPA) and consumer electronics manufacturers and retailers, which offers consumers more opportunities to donate or recycle used electronics.

We are also engaged in the Basel Convention Mobile Phone Partnership Initiative (MPPI)25 supported by the United Nations Environmental Programme (UNEP). Within this initiative, we have developed guidance documents for design, collection, refurbishment, recycling and trans-border movement of

products for re-use. At the same time, we believe that regulation should not prevent us setting up alternative systems if it means better efficiency and environmental performance.

23 Press release by Sony Ericsson , September 2008 http://www.sonyericsson.com/cws/corporate/press/pressreleases/pressreleasedetails/sustainabilityfinal-20080924

24 http://www.epa.gov/waste/partnerships/plugin/partners.htm25 http://www.basel.int/industry/mppi.html


Our approach to human rightsThe Sony Ericsson Code of Corporate ResponsibilitySony Ericsson behaves in a socially and ethically exemplary way and operates business in compliance with all national laws and regulations. The company’s Corporate Social Responsibility Code is reviewed and authorised by our Executive Committee and acts as an internal code of behaviour for all Sony Ericsson employees. This code confirms Sony Ericsson’s commitment to comply with all laws and regulations where the company operates, as well as to respect human rights and to conduct business with integrity and fairness. Sony Ericsson requires all company directors, officers and employees as well as all external partners and suppliers to adhere to this code.

Ensuring our suppliers are compliantSony Ericsson suppliers and sub-suppliers are obliged to comply with all relevant laws and regulations, to respect human rights, to treat their workforce fairly and ethically, including providing them with safe and healthy working conditions, and to commit to protecting and improving the natural environment in their overall operations. These requirements are described in the Sony Ericsson Supplier Social Responsibility Code26 and apply to all suppliers from whom the company purchases goods and services, including components suppliers for products, promotional material suppliers, logistic partners and OEM/ODM partners throughout the supply chain.

Sony Ericsson issues a Global Supplier Handbook and Factory Handbook to provide clarity to its suppliers. These documents are available on the Sony Ericsson

website and allow suppliers and potential suppliers to ensure that they can comply with the company’s standards.

During 2008 the Sony Ericsson BMC factory in Beijing conducted a self assessment in line with the EICC (Electronic Industry Citizenship Coalition) code of conduct and filed its assessment in the E-TASC tool.27

Mining and human rightsDuring 2008, several reports on working conditions in the supply chain of electronics products were published. Most of these reports were coordinated within the Make IT-fair campaign28. Sony Ericsson welcomes these types of report since they highlight a number of important issues for both Sony Ericsson and its customers. Sony Ericsson has contributed to the creation of these report and welcomes the increased attention this topic receives.

Sony Ericsson believes that an open dialogue is essential to understand these topics better. The company has participated in round table discussions and bilateral meetings with several organisations and NGOs as part of its stakeholder dialogue, including meetings with Fair Trade and SwedWatch.

As a result, Sony Ericsson is changing its approach to supply chain Social Responsibility (SR) management and is now focusing more on knowledge, competence and trust with a reduced focus on audits and supplier questionnaires. The company has concluded that it can only make improvements if there is insight into why these requirements are important to Sony Ericsson and its customers. In addition, Sony Ericsson suppliers must be able to explain and drive these requirements further down their own supply chain operations.

As part of this new approach Sony Ericsson has provided 14 different training sessions on environmental and social issues. The company has conducted 63 supplier audits during 2008 which is a reduction of 30% from 2007. Audits will continue to be an important tool to drive improvements in the supply chain but working closer with the suppliers, providing more training and support is becoming even more important.

26 www.sonyericsson.com/sustainability27 http://www.eicc.info/28 www.makeitfair.org


Health as a crucial issueBackground on nickelFor Sony Ericsson the health and safety of the users of its products is of fundamental importance. Nickel (Ni) as a material is known to cause allergic reactions to people with sensitive skin. This reaction only occurs when the skin comes into direct and prolonged contact with this material.

Sony Ericsson eliminated the use of Ni in any surface or part of the phone that could come in direct and prolonged contact with the user. To verify compliance with its requirements, a screening test is conducted as part of the environmental design review.

While all surfaces that come in direct skin contact are Ni free, in late 2007 Sony Ericsson reported that very small amounts of Ni could leak through the top layer of certain metalised parts, even though they had passed the screening test. Following discussions with dermatologists, it is highly unlikely that anyone could develop Ni sensitivity from the low levels of Ni that can leak from the surface of Sony Ericsson phones. However, as a result of these discussions, Sony Ericsson modified the design requirements of its phones and Ni is no longer allowed in any layer of any component that can come in contact with the user. The only exception is its use as an alloying element in stainless steel, which is known not to cause any reaction to people with sensitive skin.

At the same time Sony Ericsson has instructed its customer help desks and updated the Environmental Declarations29 information to confirm the products that can be used without any concern.

Explaining the Specific Absorption Rate (SAR)Sony Ericsson is aware of concerns about electromagnetic fields (EMF) exposure. Sony Ericsson sponsors independent research recommended by the World Health Organisation (WHO) and participates in research projects30 around EMF and mobile phones.

The media from time to time reports on the connection between radio signals and health. However, none of the research reviews conducted around the world has concluded that the radio signals from mobile phones or base stations are proven to cause any ill health effects. The WHO also points out that there is no proof that radio signals from mobile telephony have any negative impact on health even though this is an area with one of the greatest volumes of scientific knowledge.

Research conducted during the last fifty years has looked at different aspects of radio signals, and there are known health effects from heating as a result of certain types of radio signals31 32. Subsequent to these studies, international authorities have set limits for what is a safe level of radio signals (EMF exposure)33 34. All Sony Ericsson phone models are designed and tested to meet these limits. For mobile phones, these limits are set for Specific Absorption Rate (SAR), i.e. how much energy is absorbed in a small volume close to where the phone is held.

The SAR (Specific Absorption Rate) value is the highest value obtained during extensive and conservative measurements of each specific phone model. The real life SAR value in normal use will be significantly lower.

There are several reasons why the real life SAR is lower than the provided value. The provided SAR value corresponds to tests at the highest possible output power. In real life, the phone is only using the power that is needed to reach a base station. The phone is further reducing the transmitted power, and thereby the SAR, when the user is listening and not talking. SAR varies with the different frequency channels and bands that the phone uses. The provided value corresponds only to the frequency giving the maximum SAR. This means that the real life SAR value is different for different users and dependent on the location of the user and on the network properties. These differences are much bigger than the small variations in maximum SAR of different phone models. Typical real life SAR values can be as low as a few percent of the provided value.

For more information on SAR value and EMF health, please go to www.sonyericsson.com/health.

29 www.sonyericsson.com/environment30 http://www.who.int/peh-emf/project/en/31 www.who.int/inf-fs/en/fact193.html32 www.fda.gov33 www.icnirp.de34 www.fcc.gov/oet/rfsafety


The Millennium Villages ProjectIn October 2007 Sony Ericsson joined Ericsson in the Millennium Villages project35, a project initiated by the United Nations together with the Earth Institute of Columbia University to realise the time-bound goals set in the UN Millennium Summit36 in 2000. The project aims to bring mobile communications and internet connectivity to approximately 400,000 people in Africa, based on the scientific approaches by the Earth Institute of Columbia University which is leading the project.

Sony Ericsson supplied mobile phones to health centres and Community Health Workers of 12 village clusters in 10 African countries; Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania and Uganda.

By 2008, Sony Ericsson had supplied over 300 phones, mostly compact, high-end 3G phones for various pilot projects of community health workers’ activities. The selection of the phone was made depending on the availability of 3G coverage and models in our portfolio which were most suitable for the needs of the workers as well as foreseeing advanced usage in the near future.

In the first phase of the project the focus was on voice calls and text messaging such as the toll-free emergency call used by the Community Health Workers in the villages. Alongside the development of the infrastructure, application software and services, mobile phones are essential to facilitate knowledge sharing, health education, and collection of statistics as well as the delivery of health care in isolated rural communities which do not have a fixed-line telecommunications infrastructure.

Co-developing Solar ChargersMobile phones contribute to economic progress and health improvement in the developing world, but charging a phone can be problematic as electricity supply is inconsistent, too far away or simply not available. In early 2007 Sony Ericsson and Ericsson jointly developed a solar charger station for mobile phones. Twelve charger stations were sent to each cluster of the Millennium Villages project.

The solar charger station is built with standard components including eight Sony Ericsson car chargers, CLA-60, and can be used for all types of mobile devices. The station connects a 0.7 m² solar panel to a rack, where eight mobile phones can be charged at the same time. By including a 12-volt lead-acid battery, night time charging is also possible. The charger is intended for rural villages in developing countries without electricity and can be used almost anywhere in the world. Taking into account solar conditions in Africa and India, the solar charger is capable of charging at least 30 mobile phone batteries a day, all year round. The charger can also be used to power other electrical devices, such as computers, lights or TV sets.

Supporting the global community

35 http://www.millenniumvillages.org/36 http://www.un.org/millennium/


AppendixData conversion from kWh to CO2In line with common practice, Sony Ericsson uses the GHG Protocol to calculate CO2 out of kilowatt hour (kWh). The worksheet Electricity emission factors – all fuels lists CO2 emissions per kWh from electricity and heat generation per country. The data in this worksheet originates from the International Energy Data Services from 2006.

Sony Ericsson chose to use the GHG Protocol because it was felt to be the most comprehensive and suitable tool presently available.

In 2009 the company started to report GHG emissions in accordance to Scope 1 and Scope 2 of the Protocol, as well as to measure parts of its Scope 3 emissions, such as emissions from transportation processes.

The following emission factors have been used in accordance to this worksheet:

Factor (g[CO2]/kWh) City Country

44,537 Lund Sweden

787,868 Beijing China

428,540 Tokyo Japan

44,537 Kista Sweden

572,934 RTP, NC USA

349,232 Munich Germany

787,868 Taipei Taiwan

472,514 London UK

543,930 Singapore Singapore

44,537 Hässleholm Sweden

472,514 Farnborough UK

349,232 Emmen Netherlands

Taiwan was the only country not specified in this worksheet and CO2 emissions from electricity use in the Taipei office is calculated with the same emission factor as for China. This was done as China has the highest emission factor.

Data accuracyElectricity data is retrieved from electricity meters and/or electricity bills whenever possible. Data from all major sites are included in some cases due to set up proportional estimations on consumption is done when facilities are shared between organisations.

Additional data from our Beijing factoryOther input

2007 2008

Steam (ton) 6,194 4,881

Vehicle fuel (litre) n/a 7,626

Water (ton) 147,043 156,713

Paper (kg) 82,926 81,138

Waste (kg) 312,180 280,395

Waste recycled (kg)1 306,620 268,531

1. Waste paper/carton board, wooden box, waste plastics, metal waste and waste manual & package box are recycled.

Waste paper/carton board, wooden box, waste plastics, metal waste and waste manual & package box are recycled.

Chemical consumption

Chemical consumption (kg) 2008

Ethanol 9,260.65

Solder paste, flux solder, flux pen 2,274.24

Epoxy adhesive 825.30

Liquid nitrogen 210.00

Oil 178.00

Ink 24.69

Others 14.38

Total (kg) 12,787.26