CSR Department Corporate Communications H.Q. Corporate ... · “G AI ”i s a ter m h nco p B lu P , “Earth,” and th ei fv r s o “ l if e” thav nd br o . It describes the

Published in October 2008

[email protected]://www.sanyo.com/environment/en/

Telephone: +81-6-6994-6089　Facsimile: +81-6-6994-4339

Corporate Environment CenterEnvironmental Management H.Q.


CSR DepartmentCorporate Communications H.Q.

5-5, Keihan-Hondori 2-Chome, Moriguchi City,Osaka 570-8677, Japan

It is necessary that about two-thirds of the carbondioxide emitted in Japan be absorbed by domesticforests to attain the reduction target of the KyotoProtocol to “reduce greenhouse effect gas emis-sion by 6%.” Proactive use of domestic timbercontributes to forest cultivation where CO2 isabsorbed. The paper used for this booklet is madefrom domestic timber and thus contributes toexpanding the carbon absorption capability of thedomestic forest.

This booklet is printed using a waterless processthat does not emit harmful waste liquid into theenvironment.

Environmentally-friendly ink that employs soy beanoil solvent is used.

1 2SANYO Sustainability Report 2008 SANYO Sustainability Report 2008

“GAIA” is a term that encompasses the Blue Planet, “Earth,” and the infinite varieties of “life” that live and breathe on it.It describes the world as a single living organism, where all life and nature co-exist interdependently.

SANYO is committed to listening to GAIA's voice and engaging in activities that are beneficial to life and the Earth.As a testament to this, SANYO pledges to respond by developing only products that are absolutely essential to life and the Earth.We aim to bequeath a beautiful Earth to future generations.This is SANYO's Brand VisionーThink GAIA.

To realize this vision, and in line with its aim to become a leading provider of Environment- and Energy-related products,SANYO seeks to harness its exclusive, unique technology and innovative creativity to deliver global solutions.All for the Earth. All for life. All for GAIA.

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CONTENTSEditorial Policy

About Sanyo Electric

President's Message

Business Strategy and Sustainability

Feature

Product Creation to Help Realize a Sustainable Society

Human Resources Development to Become a“Leading Provider of Environment- and Energy-related Products”

Management

Management

Environmental Report

Environmental Mid-term Strategy

Overview of the Environmental Impact ofthe Sanyo Group (In Japan)

Environmental Action Plan

Reduction of Environmental Impact in Products

Reduction of Environmental Impact inBusiness Activities

Environmental Management

Social Responsibility Report

Together with Customers

Together with Employees

Together with Business Partners

Together with Local Communities

CSR Activities Outside Japan

Independent Review Report

Editorial Policy


President's Message


Feature



Management

Management
















“GAIA” is a term that encompasses the Blue Planet, “Earth,” and the infinite varieties of “life” that live and breathe on it.It describes the world as a single living organism, where all life and nature co-exist interdependently.

SANYO is committed to listening to GAIA's voice and engaging in activities that are beneficial to life and the Earth.As a testament to this, SANYO pledges to respond by developing only products that are absolutely essential to life and the Earth.We aim to bequeath a beautiful Earth to future generations.This is SANYO's Brand VisionーThink GAIA.

To realize this vision, and in line with its aim to become a leading provider of Environment- and Energy-related products,SANYO seeks to harness its exclusive, unique technology and innovative creativity to deliver global solutions.All for the Earth. All for life. All for GAIA.

……………………………………………………… 3

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…………………………………………… 5

……………………………………… 7

…………… 11

…… 17

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CONTENTSEditorial Policy


President's Message


Feature



Management

Management















Editorial Policy


President's Message


Feature



Management

Management















Editorial Policy About Sanyo Electric


Important for Sanyo High

High

ImportantReported in this publication/website

Most importantReported in

this publication

Imp

ortantfor

stakeholders

andsociety

Common sharesPreferred shares APreferred shares B

7,060,300,000182,600,000246,100,000

1,872,338,099182,542,200246,029,300

249,23633

TotalMale

Female

10,8238,7192,104

19 yrs 9 mo20 yrs 0 mo19 yrs 8 mo

0

1,000

2,000

3,000（Billions of yen）（Billions of yen）

2007200620052004

2,089.82,118.1

2,031.71,882.6

2,017.8

2003（Fiscal year）

（Fiscal year）

0

40

80

-80

-40

-120

-200

-160

20072006200520042003

13.4

59.1

4.9

-171.5

-35.9

42.6

76.1

-205.7

-45.4

28.7

Consumer business756.7 billion yen（37.50％）

Commercial business262.5 billion yen（13.01％）

Component business953.3 billion yen（47.24％）

Other business45.3 billion yen（2.25％）

Total2,017.8

billion yen

Total2,017.8

billion yen

Japan742.5 billion yen（36.80％）

North America258.9 billion yen（12.83％）

Europe239.2 billion yen（11.85％）

Asia713.3 billion yen（35.35％）

Other64 billion yen（3.17％）

Net incomeOperating income

Number ofEmployees

Total number of sharesthat can be issued

Total numberof shares issued

Number ofstockholders

Average yearsof service

Type


In preparing this latest publication, we have endeavored toselect topics that are assumed to be material for a largenumber of our stakeholders and are vital in terms of the globalenvironment and society. We have also chosen topics that areimportant for the sustainability of the Company.

This year, in addition to the Company’s business strategies,Sanyo’s initiatives for “Product Creation” and “HumanResources Development” to realize its corporate sustainabilityare introduced. Also, for the report on environmental/socialactivities, Sanyo’s various activities, centering around topicsthat are assumed to be material for its stakeholders, areincluded, and a new feature is the introduction of variousactivities at overseas subsidiaries.

On the Sanyo Group “Environment & Social” website, there isalso detailed performance data relating to Sanyo’s overall envi-ronmental and social activities, in addition to an outline of therelevant activities and other information contained in this publi-cation.

■ ScopeFinancial report: SANYO Electric Co., Ltd., and consolidated

subsidiaries worldwide.Environmental report: SANYO Electric Co., Ltd., and manu-

facturing subsidiaries in JapanSocial responsibility report: SANYO Electric Co., Ltd., and

main related companies worldwide

■ PeriodApril 1, 2007 to March 31, 2008(Also includes some data, targets, and forecasts outside ofthis period.)

■ PublicationOctober 2008(Previous: November 2007, Next: Scheduled for September 2009)

■ Accuracy of Report InformationThe reliability of the information management system usedby Sanyo for gathering environmental data, as well as theconsistency of the information and relevant materials con-tained in this report has been reviewed by Det NorskeVeritas AS (DNV), an independent auditing agency.

■ Reference Guidelines・GRI Sustainability Reporting Guidelines 2006・Environmental Reporting Guidelines, 2007

(Japanese Ministry of the Environment)・Environmental Accounting Guidelines, 2005

(Japanese Ministry of the Environment)

■ Other InformationFinancial Information Annual Report (for corporate investors)

SANYO NOW (for individual stockholders)http://www.sanyo.com/investor-relations/

Technical Information SANYO Technical Reviewhttp://www.sanyo.co.jp/giho/index-e.html

■ Information Regarding Organizational ChangeIn April 2008, Sanyo sold its mobile phone business by spin-off and made the corresponding business a discontinuedoperation. Consequently, based on the U.S. GAAP, its busi-ness results for fiscal 2008 were excluded from the financialreport in this publication, in terms of net sales and operatingincome.

Inquiries

Printed edition, general inquiriesCorporate Communications H.Q., CSR Dept.TEL. +81-6-6994-3536 FAX. +81-6-6994-6831

Environmental ReportEnvironmental Management H.Q.,Corporate Environment CenterTEL. +81-6-6994-6089 FAX. +81-6-6994-4339

Name of Company: SANYO Electric Co., Ltd.Head Office: 5-5, Keihan-Hondori 2-Chome, Moriguchi City,

Osaka JapanFounded / Incorporated: February 1947 / April 1950Executive Director & President: Seiichiro Sano

Capital: ¥322,242,319,083*1

Number of Employees: Non-consolidated 10,823;Consolidated 99,875*1

Number of Consolidated Companies:186 (67 in Japan and 119 overseas)*1

*1. As of March 31, 2008*2. The total number of issued common shares includes 18,585,763 in own shares.

*Based on accounting principles generally accepted in the United States of America, due to operations that were discontinued during fiscal 2008,regarding the consolidated financial information for fiscal 2007 and before, numerical values have been partially recalculated.

■ Employees*1 ■ Total number of shares that can be issued, actually issued, and number of stockholders*1*2

■ Net Sales (consolidated) ■ Operating income / Net income (consolidated)

■ Sales by Division (consolidated) ■ Sales by Region (consolidated)

Editorial Policy Corporate Profile

Financial Report

Editorial Policy About Sanyo Electric


Important for Sanyo High

High

ImportantReported in this publication/website

Most importantReported in

this publication

Imp

ortantfor

stakeholders

andsociety

Common sharesPreferred shares APreferred shares B

7,060,300,000182,600,000246,100,000

1,872,338,099182,542,200246,029,300

249,23633

TotalMale

Female

10,8238,7192,104

19 yrs 9 mo20 yrs 0 mo19 yrs 8 mo

0

1,000

2,000

3,000（Billions of yen）（Billions of yen）

2007200620052004

2,089.82,118.1

2,031.71,882.6

2,017.8


（Fiscal year）

0

40

80

-80

-40

-120

-200

-160

20072006200520042003

13.4

59.1

4.9

-171.5

-35.9

42.6

76.1

-205.7

-45.4

28.7

Consumer business756.7 billion yen（37.50％）

Commercial business262.5 billion yen（13.01％）

Component business953.3 billion yen（47.24％）

Other business45.3 billion yen（2.25％）

Total2,017.8

billion yen

Total2,017.8

billion yen

Japan742.5 billion yen（36.80％）

North America258.9 billion yen（12.83％）

Europe239.2 billion yen（11.85％）

Asia713.3 billion yen（35.35％）

Other64 billion yen（3.17％）

Net incomeOperating income

Number ofEmployees

Total number of sharesthat can be issued

Total numberof shares issued

Number ofstockholders

Average yearsof service

Type


In preparing this latest publication, we have endeavored toselect topics that are assumed to be material for a largenumber of our stakeholders and are vital in terms of the globalenvironment and society. We have also chosen topics that areimportant for the sustainability of the Company.

This year, in addition to the Company’s business strategies,Sanyo’s initiatives for “Product Creation” and “HumanResources Development” to realize its corporate sustainabilityare introduced. Also, for the report on environmental/socialactivities, Sanyo’s various activities, centering around topicsthat are assumed to be material for its stakeholders, areincluded, and a new feature is the introduction of variousactivities at overseas subsidiaries.

On the Sanyo Group “Environment & Social” website, there isalso detailed performance data relating to Sanyo’s overall envi-ronmental and social activities, in addition to an outline of therelevant activities and other information contained in this publi-cation.

■ ScopeFinancial report: SANYO Electric Co., Ltd., and consolidated

subsidiaries worldwide.Environmental report: SANYO Electric Co., Ltd., and manu-

facturing subsidiaries in JapanSocial responsibility report: SANYO Electric Co., Ltd., and

main related companies worldwide

■ PeriodApril 1, 2007 to March 31, 2008(Also includes some data, targets, and forecasts outside ofthis period.)

■ PublicationOctober 2008(Previous: November 2007, Next: Scheduled for September 2009)

■ Accuracy of Report InformationThe reliability of the information management system usedby Sanyo for gathering environmental data, as well as theconsistency of the information and relevant materials con-tained in this report has been reviewed by Det NorskeVeritas AS (DNV), an independent auditing agency.

■ Reference Guidelines・GRI Sustainability Reporting Guidelines 2006・Environmental Reporting Guidelines, 2007

(Japanese Ministry of the Environment)・Environmental Accounting Guidelines, 2005

(Japanese Ministry of the Environment)

■ Other InformationFinancial Information Annual Report (for corporate investors)

SANYO NOW (for individual stockholders)http://www.sanyo.com/investor-relations/

Technical Information SANYO Technical Reviewhttp://www.sanyo.co.jp/giho/index-e.html

■ Information Regarding Organizational ChangeIn April 2008, Sanyo sold its mobile phone business by spin-off and made the corresponding business a discontinuedoperation. Consequently, based on the U.S. GAAP, its busi-ness results for fiscal 2008 were excluded from the financialreport in this publication, in terms of net sales and operatingincome.

Inquiries

Printed edition, general inquiriesCorporate Communications H.Q., CSR Dept.TEL. +81-6-6994-3536 FAX. +81-6-6994-6831

Environmental ReportEnvironmental Management H.Q.,Corporate Environment CenterTEL. +81-6-6994-6089 FAX. +81-6-6994-4339

Name of Company: SANYO Electric Co., Ltd.Head Office: 5-5, Keihan-Hondori 2-Chome, Moriguchi City,

Osaka JapanFounded / Incorporated: February 1947 / April 1950Executive Director & President: Seiichiro Sano

Capital: ¥322,242,319,083*1

Number of Employees: Non-consolidated 10,823;Consolidated 99,875*1

Number of Consolidated Companies:186 (67 in Japan and 119 overseas)*1

*1. As of March 31, 2008*2. The total number of issued common shares includes 18,585,763 in own shares.

*Based on accounting principles generally accepted in the United States of America, due to operations that were discontinued during fiscal 2008,regarding the consolidated financial information for fiscal 2007 and before, numerical values have been partially recalculated.

■ Employees*1 ■ Total number of shares that can be issued, actually issued, and number of stockholders*1*2

■ Net Sales (consolidated) ■ Operating income / Net income (consolidated)

■ Sales by Division (consolidated) ■ Sales by Region (consolidated)

Editorial Policy Corporate Profile

Financial Report

President's Message


Seiichiro Sano

Executive Director and President

Seiichiro Sano, Executive Director and President

Aiming to reach a business level of 1 trillion yen

Business goals to be achieved by 2020

■ Helping to solve global problems■Business expansion in the areas of solar cells, HEV, and eneloop

Amount of CO2 reduction effect by 202020 million metric tons

In markets that greatly contribute to CO2 reduction

We implement reforms to become a leading provider ofEnvironment- and Energy-related products, and aim to create afoundation for a profitable company with renewed public confi-dence

During the three years leading up to fiscal 2007, the SanyoGroup has been rebuilding its business portfolio, and takingmeasures to improve management efficiency across the entiregroup. Through these efforts Sanyo has worked to recover itsprofit foundation and financial health, and promote manage-ment reconstruction. As a result, Sanyo has achieved the oper-ating and net profit targets for fiscal 2007 that it indicated toits stakeholders. The profit foundation has been restoredthrough increased earnings from rechargeable batteries, solarcells, electronic components, and digital cameras, therebydelivering definite results.

■Setting targets for the achievement of anew medium-term management plan

As part of a new medium-term management plan beginningin fiscal 2008, Sanyo has established three-year managementtargets called, Challenge 1000. The medium-term manage-ment policy is to implement reforms to become a leadingprovider of Environment- and Energy-related products and tocreate a foundation for a profitable company with renewedpublic confidence. The goal is to achieve profitability in all thecontinuing operations within three years (about 1,000 days),and raise the consolidated operating profit to at least 90billion yen (ideally 100 billion yen or more) by fiscal 2010. Thegroup’s businesses have been divided into three domains –energy, electronics, and ecology – according to fundamentaltechnologies and directions. Moreover, based on their marketsand business models, the group’s businesses have beenfurther divided into either component or electric appliancebusinesses, for the purposes of business strategy formulationand management.

■Transitioning from management recon-struction to a growth path

In order to make a major strategic transition from the previousthree years of management reconstruction to a growth pathrequiring a solid foundation for profitability, and in order tosecure a foundation for sustainable growth, Sanyo is implement-ing its largest capital investment to date, totaling around 360billion yen. Seventy percent will be invested in Sanyo’s leadingbusiness areas: rechargeable batteries, solar technology, andelectronic components.In fiscal 2008, the group is expecting a drop in operating profits

due to an increase in depreciation costs ahead of the capitalinvestment, and a deterioration of the business environmentincluding rising material and oil prices, as well as exchange ratefluctuations. However, I would like to assure you that this will onlybe a temporary drop in profits while we stay focused on ourgrowth strategy. We intend to earn the confidence of stakehold-ers through the achievement of our new medium-term manage-ment plan, as the investment starts to create steady profits.

■Initiatives to tackle environmental andenergy issues by 2020

Society in the 21st century is faced with ever-worseningproblems for the Earth’s environment, such as global warming,the depletion of resources, water shortages, and pollution.With the issue of global warming in particular, there has beena sudden increase in energy consumption by countries world-wide, together with industrialization, causing CO2 levels togrow in Earth’s atmosphere. As a result, we are now seeingthe greatest rise in average global temperatures since theIndustrial Revolution. It is expected that the world will run outof oil in 40 years, and natural gas in 60 years, making iturgently necessary to start switching to alternative energysources.

Sanyo has technology that can contribute to solving theseglobal environmental problems, and this will be a major busi-ness opportunity for the future. We are contributing greatly tothe prevention of global warming by reducing CO2 emissions,through rechargeable batteries such as nickel-metal hydrideeneloop batteries for consumers, as well as through solar cellsand rechargeable batteries for hybrid vehicles. The plan is toexpand these business areas to the one trillion yen level by2020. In doing so, we could possibly offset CO2 emissions byabout 20 million metric tons.

Sanyo is promoting technology development with the targetof achieving carbon neutral* status by 2010. This is where theamount of CO2 emissions generated through our businessactivities is equivalent to that of CO2 emissions offset by theuse of environmentally-conscious Sanyo products, such as solarcells and rechargeable batteries. Ultimately, we are aiming fora situation where the CO2 offset by the use of our products isgreater than our CO2 emissions, thereby contributing to theplanet with a carbon minus* operation.

■Strengthening human resource competencewhile improving functional capability

As a manufacturer, Sanyo needs to obtain the confidenceand satisfaction of customers that use our products. In orderfor general consumers and corporate customers to use ourproducts with confidence, it is important to deliver not onlyproduct quality, but also maintain sound management thatincludes corporate governance and compliance. With theJ-SOX law coming into effect in Japan during fiscal 2008,Sanyo is promoting internal controls, legal compliance, andquality management, while increasing the soundness andtransparency of our management through proper informationdisclosure.

Furthermore, it is necessary for the departments in charge ofproduct R&D and design, procurement, manufacturing, sales,and distribution to function properly. The foundation for this isthe company’s human resource competence. Our employeesare precious assets. Based on our human resources philoso-phy, "The foundation of the company is its people: improveindividuals, and maximize skills and talents for the benefit ofall." we are developing and placing personnel so that they canmaximize their individual potential, while strengthening humanresource competence and improving functional capabilities.Moreover, in order to increase functional capability it is neces-sary to create work environments that motivate employeesand provide them with security and safety. We will continue topromote various initiatives in the future so that Sanyo willremain a company that values its employees.

Sanyo is aiming for the sustainable development of its busi-ness and society, by steadily executing a new medium-termmanagement plan based on the support of our valued stake-holders. While living up to your expectations, we are carryingout reforms to become a leading provider of Environment-and Energy-related products. I look forward to your continuedsupport in the future.

* Here, “carbon neutral” and “carbon minus” are terms defined by Sanyo.

President's Message


Seiichiro Sano

Executive Director and President

Seiichiro Sano, Executive Director and President

Aiming to reach a business level of 1 trillion yen

Business goals to be achieved by 2020

■ Helping to solve global problems■Business expansion in the areas of solar cells, HEV, and eneloop

Amount of CO2 reduction effect by 202020 million metric tons

In markets that greatly contribute to CO2 reduction

We implement reforms to become a leading provider ofEnvironment- and Energy-related products, and aim to create afoundation for a profitable company with renewed public confi-dence

During the three years leading up to fiscal 2007, the SanyoGroup has been rebuilding its business portfolio, and takingmeasures to improve management efficiency across the entiregroup. Through these efforts Sanyo has worked to recover itsprofit foundation and financial health, and promote manage-ment reconstruction. As a result, Sanyo has achieved the oper-ating and net profit targets for fiscal 2007 that it indicated toits stakeholders. The profit foundation has been restoredthrough increased earnings from rechargeable batteries, solarcells, electronic components, and digital cameras, therebydelivering definite results.

■Setting targets for the achievement of anew medium-term management plan

As part of a new medium-term management plan beginningin fiscal 2008, Sanyo has established three-year managementtargets called, Challenge 1000. The medium-term manage-ment policy is to implement reforms to become a leadingprovider of Environment- and Energy-related products and tocreate a foundation for a profitable company with renewedpublic confidence. The goal is to achieve profitability in all thecontinuing operations within three years (about 1,000 days),and raise the consolidated operating profit to at least 90billion yen (ideally 100 billion yen or more) by fiscal 2010. Thegroup’s businesses have been divided into three domains –energy, electronics, and ecology – according to fundamentaltechnologies and directions. Moreover, based on their marketsand business models, the group’s businesses have beenfurther divided into either component or electric appliancebusinesses, for the purposes of business strategy formulationand management.

■Transitioning from management recon-struction to a growth path

In order to make a major strategic transition from the previousthree years of management reconstruction to a growth pathrequiring a solid foundation for profitability, and in order tosecure a foundation for sustainable growth, Sanyo is implement-ing its largest capital investment to date, totaling around 360billion yen. Seventy percent will be invested in Sanyo’s leadingbusiness areas: rechargeable batteries, solar technology, andelectronic components.In fiscal 2008, the group is expecting a drop in operating profits

due to an increase in depreciation costs ahead of the capitalinvestment, and a deterioration of the business environmentincluding rising material and oil prices, as well as exchange ratefluctuations. However, I would like to assure you that this will onlybe a temporary drop in profits while we stay focused on ourgrowth strategy. We intend to earn the confidence of stakehold-ers through the achievement of our new medium-term manage-ment plan, as the investment starts to create steady profits.

■Initiatives to tackle environmental andenergy issues by 2020

Society in the 21st century is faced with ever-worseningproblems for the Earth’s environment, such as global warming,the depletion of resources, water shortages, and pollution.With the issue of global warming in particular, there has beena sudden increase in energy consumption by countries world-wide, together with industrialization, causing CO2 levels togrow in Earth’s atmosphere. As a result, we are now seeingthe greatest rise in average global temperatures since theIndustrial Revolution. It is expected that the world will run outof oil in 40 years, and natural gas in 60 years, making iturgently necessary to start switching to alternative energysources.

Sanyo has technology that can contribute to solving theseglobal environmental problems, and this will be a major busi-ness opportunity for the future. We are contributing greatly tothe prevention of global warming by reducing CO2 emissions,through rechargeable batteries such as nickel-metal hydrideeneloop batteries for consumers, as well as through solar cellsand rechargeable batteries for hybrid vehicles. The plan is toexpand these business areas to the one trillion yen level by2020. In doing so, we could possibly offset CO2 emissions byabout 20 million metric tons.

Sanyo is promoting technology development with the targetof achieving carbon neutral* status by 2010. This is where theamount of CO2 emissions generated through our businessactivities is equivalent to that of CO2 emissions offset by theuse of environmentally-conscious Sanyo products, such as solarcells and rechargeable batteries. Ultimately, we are aiming fora situation where the CO2 offset by the use of our products isgreater than our CO2 emissions, thereby contributing to theplanet with a carbon minus* operation.

■Strengthening human resource competencewhile improving functional capability

As a manufacturer, Sanyo needs to obtain the confidenceand satisfaction of customers that use our products. In orderfor general consumers and corporate customers to use ourproducts with confidence, it is important to deliver not onlyproduct quality, but also maintain sound management thatincludes corporate governance and compliance. With theJ-SOX law coming into effect in Japan during fiscal 2008,Sanyo is promoting internal controls, legal compliance, andquality management, while increasing the soundness andtransparency of our management through proper informationdisclosure.

Furthermore, it is necessary for the departments in charge ofproduct R&D and design, procurement, manufacturing, sales,and distribution to function properly. The foundation for this isthe company’s human resource competence. Our employeesare precious assets. Based on our human resources philoso-phy, "The foundation of the company is its people: improveindividuals, and maximize skills and talents for the benefit ofall." we are developing and placing personnel so that they canmaximize their individual potential, while strengthening humanresource competence and improving functional capabilities.Moreover, in order to increase functional capability it is neces-sary to create work environments that motivate employeesand provide them with security and safety. We will continue topromote various initiatives in the future so that Sanyo willremain a company that values its employees.

Sanyo is aiming for the sustainable development of its busi-ness and society, by steadily executing a new medium-termmanagement plan based on the support of our valued stake-holders. While living up to your expectations, we are carryingout reforms to become a leading provider of Environment-and Energy-related products. I look forward to your continuedsupport in the future.

* Here, “carbon neutral” and “carbon minus” are terms defined by Sanyo.



EcologyBusiness Domain

Reforms for becoming a"leading provider of Environment- and Energy-related products"

Management Philosophy:We are committed to becoming an indispensableelement in the lives of people all over the world.

EnergyBusiness Domain

Rechargeable Battery Business

Solar Business

Device Business Digital Business

White Goods Business

Commercial Business

3E

Competitive Technologies

Basic Technologies

Situation in 2020Providing products and technologies that are essential to the world

Contributing to the world as a

“leading provider of Environment- and Energy-related products”

Energy technology・Solar cell technology・Rechargeable battery technology・Compressor technology・Energy-saving technology

Environmental purification technology・Ozone technology・Water electrolyzation technology・Membrane filtration technology・Absorption technology・Biotechnology

Electronics technology developed for home appliancesElectronics technology developed for home appliances

3E

・Device technology　・Digital technology　・Network technology・Basic material technology　・Image-processing technology　・Car navigation technology　・Digital camera technology　・Semiconductor technology

Demonstrating overall capability by merging technologies

component Businesses Electric Appliance Businessescomponent Businesses Electric Appliance Businesses

ElectronicsBusiness Domain


Business Strategy and SustainabilitySeeing the transition to a sustainable society as a great opportu-nity, we aim for sustainable development for the Sanyo Group andsociety while establishing a foundation for a highly profitable com-pany

■ Sharing Sanyo values“We are committed to becoming an indispensable element in

the lives of people all over the world.“ This is Sanyo’s manage-ment philosophy, and the starting point for corporate socialresponsibility (CSR) in the Sanyo Group. The aim is to becomea corporation that is loved and trusted by people around theworld by providing services with sincerity as well as productswith outstanding, original technology.

Our brand vision, Think GAIA, shows our intention to alwaysconsider life and the Earth first, in order to help realize asustainable society and sustainable development of our group.We place importance on sharing this set of values with theroughly 100,000 Sanyo Group employees worldwide.Furthermore, based on these values, Sanyo strives to listen to

and work with its various stakeholders including customers,employees, stockholders, investors, business partners, localcommunities, NGOs, and NPOs, in order to fulfill its economic,social, and environmental responsibilities.

■ Reforms for becoming a leading provider ofEnvironment- and Energy-related productsand medium-term management strategy

In order to fulfill social responsibilities and put its manage-ment philosophy and brand vision into practice, Sanyo needsto implement initiatives in its operations to deal with socialand global environmental issues, while also working to put thegroup on a continual growth path.

The Sanyo Group has established a Master Plan three-yearmanagement strategy, which is set to begin in fiscal 2008.The aim is to establish a foundation for restoring customerconfidence, to become a highly profitable company, and todevelop into a leading provider of Environment- and Energy-related products. As part of this effort, Sanyo is reconstruct-ing its business portfolio, and has established three main busi-ness domains: energy, electronics, and ecology, called 3E's.

This new portfolio is made up of businesses where the SanyoGroup has a large share of the world market, as well as busi-nesses where the group has global presence based on originaltechnology. These directions have been clarified in order tosucceed in the face of intense global competition, and tobecome a leading provider of Environment- and Energy-related products.

Under the Master Plan, medium-term management targetscalled, Challenge 1000, have been set for achievement byfiscal 2010. The plan places importance on profit targets forthe entire group, and cash flow in all the continuing busi-nesses. By giving a commitment to the stakeholders for thetackling and achieving of profitability targets, Sanyo is aimingto earn public confidence.

■ Original technology to support the devel-opment of sustainable society

The Sanyo Group is aiming to achieve its Challenge 1000medium-term management targets, while contributing towardsthe resolution of global issues. It intends to do this by maximiz-ing the use of electronics and environmental purification tech-nologies, as well as its original energy technologies.

Energy technology is one of Sanyo’s areas of strength. A keyproduct, rechargeable batteries, is contributing to the reduc-tion of waste, while supporting better lives for consumers, byproviding energy sources for portable devices, such as cellphones and laptop computers, which are integral to daily life.Sanyo’s unique HIT solar cell technology, one important sourceof sustainable energy, has the highest energy conversionefficiency in the world. Along with the refinement of this solarelectric generation system, Sanyo is accelerating the develop-ment of thin-film solar cells, which hold a lot of promise as anext-generation technology. In this way, Sanyo is contributinggreatly to the prevention of global warming.

Another strength of Sanyo’s is environmental purificationtechnology. The group’s unique water electrolyzation andozone technologies are used for water and air purificationsystems. This contributes to the alleviation of public health

problems such as water pollution and virus infection, therebyoffering more comfortable lives for everyone. Moreover, thistechnology has been incorporated into Sanyo’s drum-typewasher-dryers to realize water-saving benefits, which alsohelps conserve water resources.

Sanyo also has various electronics technologies developedfor the production of home appliances and electronic devices.By meeting the needs of various manufacturers for electroniccomponents and semiconductor devices, and by promotinghigher quality, better reliability, greater energy savings, Sanyois contributing to the improvement of added value and energyconservation in consumer devices. Sanyo’s image-processingand digital technologies are also used in devices such as digitalcameras, car navigation systems, and LCD projectors, provid-ing consumers with satisfying products.

In this way, the Sanyo Group is simultaneously realizing prod-uct development and environmental protection, thereby con-tributing to the health of the planet, and helping to create asustainable society. By merging these technologies and show-ing its overall capability, Sanyo is transforming itself into aleading provider of Environment- and Energy-related productsessential to the world.

We are committed to becoming an indispensableelement in the lives of people all over the world.

Sanyo Electric Group Management Philosophy

Brand vision



EcologyBusiness Domain

Reforms for becoming a"leading provider of Environment- and Energy-related products"

Management Philosophy:We are committed to becoming an indispensableelement in the lives of people all over the world.

EnergyBusiness Domain

Rechargeable Battery Business

Solar Business

Device Business Digital Business

White Goods Business

Commercial Business

3E

Competitive Technologies

Basic Technologies

Situation in 2020Providing products and technologies that are essential to the world

Contributing to the world as a

“leading provider of Environment- and Energy-related products”

Energy technology・Solar cell technology・Rechargeable battery technology・Compressor technology・Energy-saving technology

Environmental purification technology・Ozone technology・Water electrolyzation technology・Membrane filtration technology・Absorption technology・Biotechnology

Electronics technology developed for home appliancesElectronics technology developed for home appliances

3E

・Device technology　・Digital technology　・Network technology・Basic material technology　・Image-processing technology　・Car navigation technology　・Digital camera technology　・Semiconductor technology

Demonstrating overall capability by merging technologies

component Businesses Electric Appliance Businessescomponent Businesses Electric Appliance Businesses



Business Strategy and SustainabilitySeeing the transition to a sustainable society as a great opportu-nity, we aim for sustainable development for the Sanyo Group andsociety while establishing a foundation for a highly profitable com-pany

■ Sharing Sanyo values“We are committed to becoming an indispensable element in

the lives of people all over the world.“ This is Sanyo’s manage-ment philosophy, and the starting point for corporate socialresponsibility (CSR) in the Sanyo Group. The aim is to becomea corporation that is loved and trusted by people around theworld by providing services with sincerity as well as productswith outstanding, original technology.

Our brand vision, Think GAIA, shows our intention to alwaysconsider life and the Earth first, in order to help realize asustainable society and sustainable development of our group.We place importance on sharing this set of values with theroughly 100,000 Sanyo Group employees worldwide.Furthermore, based on these values, Sanyo strives to listen to

and work with its various stakeholders including customers,employees, stockholders, investors, business partners, localcommunities, NGOs, and NPOs, in order to fulfill its economic,social, and environmental responsibilities.

■ Reforms for becoming a leading provider ofEnvironment- and Energy-related productsand medium-term management strategy

In order to fulfill social responsibilities and put its manage-ment philosophy and brand vision into practice, Sanyo needsto implement initiatives in its operations to deal with socialand global environmental issues, while also working to put thegroup on a continual growth path.

The Sanyo Group has established a Master Plan three-yearmanagement strategy, which is set to begin in fiscal 2008.The aim is to establish a foundation for restoring customerconfidence, to become a highly profitable company, and todevelop into a leading provider of Environment- and Energy-related products. As part of this effort, Sanyo is reconstruct-ing its business portfolio, and has established three main busi-ness domains: energy, electronics, and ecology, called 3E's.

This new portfolio is made up of businesses where the SanyoGroup has a large share of the world market, as well as busi-nesses where the group has global presence based on originaltechnology. These directions have been clarified in order tosucceed in the face of intense global competition, and tobecome a leading provider of Environment- and Energy-related products.

Under the Master Plan, medium-term management targetscalled, Challenge 1000, have been set for achievement byfiscal 2010. The plan places importance on profit targets forthe entire group, and cash flow in all the continuing busi-nesses. By giving a commitment to the stakeholders for thetackling and achieving of profitability targets, Sanyo is aimingto earn public confidence.

■ Original technology to support the devel-opment of sustainable society

The Sanyo Group is aiming to achieve its Challenge 1000medium-term management targets, while contributing towardsthe resolution of global issues. It intends to do this by maximiz-ing the use of electronics and environmental purification tech-nologies, as well as its original energy technologies.

Energy technology is one of Sanyo’s areas of strength. A keyproduct, rechargeable batteries, is contributing to the reduc-tion of waste, while supporting better lives for consumers, byproviding energy sources for portable devices, such as cellphones and laptop computers, which are integral to daily life.Sanyo’s unique HIT solar cell technology, one important sourceof sustainable energy, has the highest energy conversionefficiency in the world. Along with the refinement of this solarelectric generation system, Sanyo is accelerating the develop-ment of thin-film solar cells, which hold a lot of promise as anext-generation technology. In this way, Sanyo is contributinggreatly to the prevention of global warming.

Another strength of Sanyo’s is environmental purificationtechnology. The group’s unique water electrolyzation andozone technologies are used for water and air purificationsystems. This contributes to the alleviation of public health

problems such as water pollution and virus infection, therebyoffering more comfortable lives for everyone. Moreover, thistechnology has been incorporated into Sanyo’s drum-typewasher-dryers to realize water-saving benefits, which alsohelps conserve water resources.

Sanyo also has various electronics technologies developedfor the production of home appliances and electronic devices.By meeting the needs of various manufacturers for electroniccomponents and semiconductor devices, and by promotinghigher quality, better reliability, greater energy savings, Sanyois contributing to the improvement of added value and energyconservation in consumer devices. Sanyo’s image-processingand digital technologies are also used in devices such as digitalcameras, car navigation systems, and LCD projectors, provid-ing consumers with satisfying products.

In this way, the Sanyo Group is simultaneously realizing prod-uct development and environmental protection, thereby con-tributing to the health of the planet, and helping to create asustainable society. By merging these technologies and show-ing its overall capability, Sanyo is transforming itself into aleading provider of Environment- and Energy-related productsessential to the world.


Sanyo Electric Group Management Philosophy

Brand vision



0

200

400

600

800

1,000

1,200

201020092008

0

200

400

600

800

1,000

1,200

201020092008

0

200

400

600

800

1,000

1,200

201020092008

0

20

40

60

80

100

0

20

40

60

80

100

0

20

40

60

80

100

Net sales

Operating income

Net sales

Operating income

500

45 ＋3＋10

540

48

610

58

980

33 ＋11

（107%）（110%）

（104%）（112%）

（108%）（113%）

＋8

1,050

44

1,150

52

500

9 ＋3 ＋4

520

12

580

16

Operating income(Billions of yen)

Net sales(Billions of yen)



Net sales

Operating income



（Fiscal year）

（Fiscal year）

（Fiscal year）


■Energy Business Domain

■Electronics Business Domain

■Ecology Business Domain

Rechargeable Battery BusinessStrengthen position (performance, reliability, supply capacity,etc.) as the No. 1 business entity, and achieve further growthwith 125 billion yen in intensive investment◎Lithium-ion batteries・Increase productivity through focused investment・Strengthen partnerships with major clients◎Rechargeable batteries for hybrid electric vehicles (HEVs)・Based on Sanyo ’s advanced battery technologies

(performance/reliability), start full-swing operation withstrategic investment

Electronic Component Business◎Capacitor Business・Intensively specialize in high value-added capacitors・Continue strengthening Industry No.1 position

(Production capacity, high-quality/high-reliability technologies)◎Optical Pickup Business・Further strengthen competitiveness to maintain the No.1 share

Semiconductor Business・Further concentrate resources in competitive products

(Component, niche AV, in-car products)・Increase facilities investment and pursue higher efficiency・Strengthen cooperation with other business fields (Improve

customer handling capability, increase internal procure-ment rate)

Commercial Business◎Air Conditioning Business・Increase profitability by shifting management resources to

growing markets (Europe/China)◎Cold Chain Business・Increase profitability in Japan, and focus businesses target-

ing growing markets (China, etc.) and large accounts◎Compressor Business・Release new high-performance/low-cost models for the

volume zone, improve customer-handling capabilities, anddevelop a market in U.S.A.

◎Medical Business・Lead the medical information system industry in Japan

through further strengthening business base (Medicom)

Digital Business◎DI Business (Digital Camera)・Increase product capabilities through co-development with

main clients・Increase orders through improving cost competitiveness◎Projector Business・Maintain dominant share in the production of large projec-

tors and escalate efforts for differentiated products suchas ultra-short focus projectors

◎TV Business・Strengthen the position in the North American market and

create stable profits in the emerging markets◎In-car Product Business・Expand sales through improvement of customer-handling

capability and continuous enhancement of portable navi-gation system business

Solar BusinessImplement 70 billion yen scale strategic investmentFocusing on overseas markets, increase sales and expandprofit◎HIT Solar Cells・Expand overseas sales through increasing productivity

Multiply overseas sales scale, primarily in Europe andNorth America by fiscal 2010

・Intensify the development of cost-reduction technology・Strengthen strategic function as a business directly con-

trolled by Headquarters◎Next Generation Solar Cells・Establish the“Advanced Photovoltaics Development

Center”

・Expand business domain from basic research support toregenerative medical support, and intensify efforts in theoverseas markets (Biomedical)

◎Strengthen service function (Commercial products replacement service)

White Goods BusinessTurn into a global-level profitable business・Increase product capabilities by capitalizing on Sanyo’s

strengths such as environmental technology・Promote measures to improve management efficiency

through SANYO Consumer Electronics Co., Ltd.・Expand sales on a global scale

(Set global-scale sales goals and clarify sales responsibilities)

Consolidated

Net sales

Operating income

2,020

50

FY 2008

2,150

70

FY 2009Mid-term Management Plan

2,380

90

FY 2010

Challenge goal: 100

(Billions of yen)

Major Numerical Goals in Mid-term Management Plan Group-wide Capital Investment Plan

2005 - 2007(Over 3 Years)

Approx.￥230 billion

2002 - 2004(Over 3 Years)


Rechargeable batterySolar

Electronic component

Approx.￥360 billionTotal amount of capital investment

Other

2008 - 2010(Over 3 Years)

Approx. 70%(Approx.￥250bil)

Approx. 50%(Approx.￥120 bil)




Overview of the new medium-term management plan (FY 2008 to 2010)



0

200

400

600

800

1,000

1,200

201020092008

0

200

400

600

800

1,000

1,200

201020092008

0

200

400

600

800

1,000

1,200

201020092008

0

20

40

60

80

100

0

20

40

60

80

100

0

20

40

60

80

100

Net sales

Operating income

Net sales

Operating income

500

45 ＋3＋10

540

48

610

58

980

33 ＋11

（107%）（110%）

（104%）（112%）

（108%）（113%）

＋8

1,050

44

1,150

52

500

9 ＋3 ＋4

520

12

580

16





Net sales

Operating income



（Fiscal year）

（Fiscal year）

（Fiscal year）


■Energy Business Domain

■Electronics Business Domain

■Ecology Business Domain

Rechargeable Battery BusinessStrengthen position (performance, reliability, supply capacity,etc.) as the No. 1 business entity, and achieve further growthwith 125 billion yen in intensive investment◎Lithium-ion batteries・Increase productivity through focused investment・Strengthen partnerships with major clients◎Rechargeable batteries for hybrid electric vehicles (HEVs)・Based on Sanyo ’s advanced battery technologies

(performance/reliability), start full-swing operation withstrategic investment

Electronic Component Business◎Capacitor Business・Intensively specialize in high value-added capacitors・Continue strengthening Industry No.1 position

(Production capacity, high-quality/high-reliability technologies)◎Optical Pickup Business・Further strengthen competitiveness to maintain the No.1 share

Semiconductor Business・Further concentrate resources in competitive products

(Component, niche AV, in-car products)・Increase facilities investment and pursue higher efficiency・Strengthen cooperation with other business fields (Improve

customer handling capability, increase internal procure-ment rate)

Commercial Business◎Air Conditioning Business・Increase profitability by shifting management resources to

growing markets (Europe/China)◎Cold Chain Business・Increase profitability in Japan, and focus businesses target-

ing growing markets (China, etc.) and large accounts◎Compressor Business・Release new high-performance/low-cost models for the

volume zone, improve customer-handling capabilities, anddevelop a market in U.S.A.

◎Medical Business・Lead the medical information system industry in Japan

through further strengthening business base (Medicom)

Digital Business◎DI Business (Digital Camera)・Increase product capabilities through co-development with

main clients・Increase orders through improving cost competitiveness◎Projector Business・Maintain dominant share in the production of large projec-

tors and escalate efforts for differentiated products suchas ultra-short focus projectors

◎TV Business・Strengthen the position in the North American market and

create stable profits in the emerging markets◎In-car Product Business・Expand sales through improvement of customer-handling

capability and continuous enhancement of portable navi-gation system business

Solar BusinessImplement 70 billion yen scale strategic investmentFocusing on overseas markets, increase sales and expandprofit◎HIT Solar Cells・Expand overseas sales through increasing productivity

Multiply overseas sales scale, primarily in Europe andNorth America by fiscal 2010

・Intensify the development of cost-reduction technology・Strengthen strategic function as a business directly con-

trolled by Headquarters◎Next Generation Solar Cells・Establish the“Advanced Photovoltaics Development

Center”

・Expand business domain from basic research support toregenerative medical support, and intensify efforts in theoverseas markets (Biomedical)

◎Strengthen service function (Commercial products replacement service)

White Goods BusinessTurn into a global-level profitable business・Increase product capabilities by capitalizing on Sanyo’s

strengths such as environmental technology・Promote measures to improve management efficiency

through SANYO Consumer Electronics Co., Ltd.・Expand sales on a global scale

(Set global-scale sales goals and clarify sales responsibilities)

Consolidated

Net sales

Operating income

2,020

50

FY 2008

2,150

70

FY 2009Mid-term Management Plan

2,380

90

FY 2010

Challenge goal: 100

(Billions of yen)

Major Numerical Goals in Mid-term Management Plan Group-wide Capital Investment Plan

2005 - 2007(Over 3 Years)


2002 - 2004(Over 3 Years)


Rechargeable batterySolar

Electronic component

Approx.￥360 billionTotal amount of capital investment

Other

2008 - 2010(Over 3 Years)

Approx. 70%(Approx.￥250bil)





Overview of the new medium-term management plan (FY 2008 to 2010)



【Installed PV power by country (cumulative)】

Source: Prepared using materials from the JapanPhotovoltaic Energy Association

0

500

1,000

1,500

2,000

2,500

(MW)3,000

20062005200420032002

otherFRANCESPAINU.S.A.JAPANGERMANY

(Year)

■ Choosing the energy futureAs more people seek the conveniences of modern living,

the demand for energy increases to support these lifestyles,and this in turn accelerates the problem of global warming.One product that has gained attention as an effective way tohelp resolve this difficult problem is solar cells. While theworldwide production level for solar cells was about 300 MWin 2000, by 2007 it had grown to 3.7GW. With this strongdemand, much more production expansion can be expectedin the future.

One of the reasons behind this rapid increase in demand inrecent years is the creation of systems for the purchasing ofrenewable energy such as photovoltaic electricity, mainly inEurope. Such incentive structures are called Feed-in Tariff.These systems, created by governments to promote the useof renewable energy, help to increase the demand for photo-voltaic electricity, while encouraging new companies to enterthe market. Given this situation, Sanyo Electric is respondingto the solar market outside Japan, including Europe wheregrowth is strong, and is making a strategic investment of 70billion yen in its solar business. ■ Realizing the world’s highest energy con-

version efficiencyIn contrast to the energy conversion efficiency of 16% to

17% found in regular poly-crystalline solar cells, SanyoElectric’s HIT solar cell*1 has achieved the world’s highest con-version level of 22.3% for the research model. By increasingthe conversion efficiency, the surface area necessary to gen-erate a given level of power is reduced, which enables thecreation of solar systems that can even be installed on therelatively small rooftops of Japanese homes. Individualcustomers also benefit from the reduced installation costs

■ Next-generation solar cells underdevelopment

Production of crystalline solar cells has been affected by therise in global demand for solar cells, and tighter supplies forsilicon. Given this situation, Sanyo Electric opened theAdvanced Photovoltaics Development Center at its Gifu site inApril 2008. The company has now established a structure todevelop thin-film solar cells requiring only one percent of thesilicon needed for the currently available crystalline solar cells.Since thin-film solar cells use less silicon, they offer a cost-savings through the reduction of raw material. Less energy isneeded to manufacture thin-film solar cells, which means thatthe energy used in manufacturing a solar cell can be recoveredthrough the cell’s electrical production in one to two years.In order to fulfill its role as a leading provider of Environment-

and Energy-related products, Sanyo Electric is promoting thedevelopment of low-cost solar cells that require less energy tomanufacture. By lowering the cost, which is the key to promot-ing solar cells, Sanyo believes that even more customers willbe able to install this technology, and that the impact of CO2

on the environment will be reduced.Since Sanyo has substantially reduced the development

period for this thin-film solar cell compared to the original plan,a significant increase in R&D costs is expected. By focusingmanagement resources in this field, the company intends tofurther demonstrate one of its strengths, while fulfilling its roleto help provide more comfortable and affluent lifestyles forpeople around the world, and to protect the global environ-ment.

Seiichi KiyamaBusiness Planning Department

Solar Division

*1. The Heterojunction with Intrinsic Thin-layer (HIT) solar cell is an originaltechnology developed by Sanyo, and is a hybrid model that combines acrystalline silicon substrate and an amorphous silicon thin film.

*2. Calculated based on the example of a 4.2-kW Sanyo system installed inOsaka City, Japan, with an expected annual electrical generation of 4,909kWh, and a reduction in CO2 per 1 kWh equal to 0.3145 kg.

Company building of Elektro Abele, Alfdorf, Germany [256.5kW]Design: Elektro Abele, Photo: Donauer Solartechnik Vertriebs GmbH

HIT solar cell module HIP-210BH1

HIT solar cell

Sanyo’s HIT solar cells have been well received by the marketthanks to their high energy conversion efficiency and good tem-perature qualities. By uniting all those involved with this product,and further enhancing this strength area, we are aiming to makethis a core business for Sanyo, as a leading provider of Environ-ment- and Energy-related products.

required to put up these smaller systems.In addition, since they only suffer a small drop in output

during the hotter months due to superior temperature resis-tance, HIT solar cells offer better electrical generation, espe-cially in summer.

The electricity generated by the HIT solar cells produced bySanyo in fiscal 2007 represents a reduction in CO2 emissionsof about 60,000 tons annually*2. This is equal to about 1/10thof the CO2 emitted by Sanyo’s manufacturing plants in Japanduring one year.

1. Promoting solar cells

Sanyo is contributing greatly to the reduction of CO2 emissions through increased produc-tion of HIT solar cells, which boast the world’s highest energy conversion efficiency, andthrough accelerated development of low-cost next-generation thin-film solar cells.



【Installed PV power by country (cumulative)】

Source: Prepared using materials from the JapanPhotovoltaic Energy Association

0

500

1,000

1,500

2,000

2,500

(MW)3,000

20062005200420032002

otherFRANCESPAINU.S.A.JAPANGERMANY

(Year)

■ Choosing the energy futureAs more people seek the conveniences of modern living,

the demand for energy increases to support these lifestyles,and this in turn accelerates the problem of global warming.One product that has gained attention as an effective way tohelp resolve this difficult problem is solar cells. While theworldwide production level for solar cells was about 300 MWin 2000, by 2007 it had grown to 3.7GW. With this strongdemand, much more production expansion can be expectedin the future.

One of the reasons behind this rapid increase in demand inrecent years is the creation of systems for the purchasing ofrenewable energy such as photovoltaic electricity, mainly inEurope. Such incentive structures are called Feed-in Tariff.These systems, created by governments to promote the useof renewable energy, help to increase the demand for photo-voltaic electricity, while encouraging new companies to enterthe market. Given this situation, Sanyo Electric is respondingto the solar market outside Japan, including Europe wheregrowth is strong, and is making a strategic investment of 70billion yen in its solar business. ■ Realizing the world’s highest energy con-

version efficiencyIn contrast to the energy conversion efficiency of 16% to

17% found in regular poly-crystalline solar cells, SanyoElectric’s HIT solar cell*1 has achieved the world’s highest con-version level of 22.3% for the research model. By increasingthe conversion efficiency, the surface area necessary to gen-erate a given level of power is reduced, which enables thecreation of solar systems that can even be installed on therelatively small rooftops of Japanese homes. Individualcustomers also benefit from the reduced installation costs

■ Next-generation solar cells underdevelopment

Production of crystalline solar cells has been affected by therise in global demand for solar cells, and tighter supplies forsilicon. Given this situation, Sanyo Electric opened theAdvanced Photovoltaics Development Center at its Gifu site inApril 2008. The company has now established a structure todevelop thin-film solar cells requiring only one percent of thesilicon needed for the currently available crystalline solar cells.Since thin-film solar cells use less silicon, they offer a cost-savings through the reduction of raw material. Less energy isneeded to manufacture thin-film solar cells, which means thatthe energy used in manufacturing a solar cell can be recoveredthrough the cell’s electrical production in one to two years.In order to fulfill its role as a leading provider of Environment-

and Energy-related products, Sanyo Electric is promoting thedevelopment of low-cost solar cells that require less energy tomanufacture. By lowering the cost, which is the key to promot-ing solar cells, Sanyo believes that even more customers willbe able to install this technology, and that the impact of CO2

on the environment will be reduced.Since Sanyo has substantially reduced the development

period for this thin-film solar cell compared to the original plan,a significant increase in R&D costs is expected. By focusingmanagement resources in this field, the company intends tofurther demonstrate one of its strengths, while fulfilling its roleto help provide more comfortable and affluent lifestyles forpeople around the world, and to protect the global environ-ment.

Seiichi KiyamaBusiness Planning Department

Solar Division

*1. The Heterojunction with Intrinsic Thin-layer (HIT) solar cell is an originaltechnology developed by Sanyo, and is a hybrid model that combines acrystalline silicon substrate and an amorphous silicon thin film.

*2. Calculated based on the example of a 4.2-kW Sanyo system installed inOsaka City, Japan, with an expected annual electrical generation of 4,909kWh, and a reduction in CO2 per 1 kWh equal to 0.3145 kg.

Company building of Elektro Abele, Alfdorf, Germany [256.5kW]Design: Elektro Abele, Photo: Donauer Solartechnik Vertriebs GmbH

HIT solar cell module HIP-210BH1

HIT solar cell

Sanyo’s HIT solar cells have been well received by the marketthanks to their high energy conversion efficiency and good tem-perature qualities. By uniting all those involved with this product,and further enhancing this strength area, we are aiming to makethis a core business for Sanyo, as a leading provider of Environ-ment- and Energy-related products.

required to put up these smaller systems.In addition, since they only suffer a small drop in output

during the hotter months due to superior temperature resis-tance, HIT solar cells offer better electrical generation, espe-cially in summer.

The electricity generated by the HIT solar cells produced bySanyo in fiscal 2007 represents a reduction in CO2 emissionsof about 60,000 tons annually*2. This is equal to about 1/10thof the CO2 emitted by Sanyo’s manufacturing plants in Japanduring one year.

1. Promoting solar cells

Sanyo is contributing greatly to the reduction of CO2 emissions through increased produc-tion of HIT solar cells, which boast the world’s highest energy conversion efficiency, andthrough accelerated development of low-cost next-generation thin-film solar cells.



【CO2 Emissions in the Japanese Transportation Sector (FY 2006)】

【Total CO2 emissions per kilometer traveled (during 10/15 mode)】

Source: Prepared based on the JHFC Comprehensive EfficiencyExamination Results Report

* Hybrid electric vehicle (HEV)

0 50 100 150 200（g-CO2/km）

All-electric vehicle

Diesel HEV

Gasoline HEV*

Diesel

Gasoline 193

146

123

89.4

49

Source: Prepared based on materials from the Japanese Ministry of Land,Infrastructure, Transport and Tourism

Aircraft　4.4%

Private passenger cars48.2%

Private trucks17.8%

Commercial trucks 17.9%

Buses 1.8%

Taxis 1.7%

Ships　5.2%

Railways　3.0%

■ Hybrid vehicles are set to become the next-generation of environmentally-conscious cars

Given the problems of global warming and the depletion ofresources worldwide, the automakers are promoting thedevelopment of next-generation environmentally-consciousvehicles. The hybrid vehicle* is the leading technology under-going widespread adoption. By 2012, production is set toreach the 2-million vehicle level, and the market for recharge-able batteries for hybrid vehicles is expected to exceed 200billion yen.

Compared to regular gasoline vehicles, hybrid vehicles havedemonstrated superior gas mileage. The CO2 generated bythe combustion of one liter of gasoline is 2.32 kg. Accordingto one survey, the average distance traveled by cars in Japanis 10,000 km. If a driver replaces his regular gasoline car withan equivalent hybrid vehicle, that person can reduce his CO2

emissions by 700 kg in one year. Since the average annualdistance traveled by car is greater in the US, if hybrid carswere fully adopted in all markets, the CO2 reduction effectwould be even more substantial.

■ Role of Sanyo Electric as a consumerrechargeable battery manufacturer

Sanyo Electric has been mass producing nickel-metal hydridebatteries for hybrid vehicles to supply to automakers such asFord and Honda. Using the battery technology that Sanyo hasdeveloped in various consumer product fields, the company isable to realize the optimal battery systems. Sanyo also hasstrength in its scale and technical capability for large-scaleproduction with consistent quality, and has the capacity tomeet the growing demand.

In order to supply lithium-ion batteries for hybrid vehicleswith a high degree of safety and performance, Sanyo is carry-ing out product development in order to not only reduce thesize, weight and cost of these batteries but also to achieve thenecessary technical performance, including safety, output,durability, and temperature resistance. In the area of safety inparticular, R&D is being promoted into the optimal batterymaterials and cell composition to overcome the severe condi-tions created by automotive use such as impact, heat, andovercharging. In addition to the design of the product itself,Sanyo is simultaneously promoting research for the realizationof high-precision manufacturing and inspection technology inorder to completely prevent any foreign substance fromgetting into the batteries, which may create major problems.

Sanyo Electric’s role is to help protect the global environ-ment, by contributing to the development of environmentally-conscious vehicles through the supply of high-quality safebatteries.

■ Necessary conditions for the populariza-tion of hybrid vehicles

Various issues need to be overcome in order to acceleratethe popularization of hybrid vehicles. Since these vehicles havevarious additional components including an electric motor anda rechargeable battery, they cost more than a gasoline car,which creates the problem of a higher purchase price.

Therefore, the cost of the required rechargeable batteryneeds to be reduced through technological and productioninnovation, in order to close the price gap with gasoline cars,and expand the adoption of hybrid cars.

Another issue is the need to increase the performance andsafety of rechargeable batteries while bringing the cost downat the same time. In the market for hybrid vehicle batteries,the demand is shifting from the currently mainstream nickel-metal hydride batteries to the higher performance lithium-ionbatteries. In addition to increasing the technological ability forsecuring safety as a vehicle battery, the adoption of lithium-ionbatteries, which are also lighter than nickel-metal hydridebatteries, will contribute to greater fuel efficiency throughweight reduction.

Lithium-ion battery system for HEV (under development)

■ Rising world automobile demand and en-vironmental regulations

Today, the transportation sector in Japan, including railways,aircraft, and automobiles, are responsible for 20% of thecountry’s CO2 emissions. Of the CO2 emitted by the transpor-tation sector, 90% comes from automobiles including busesand trucks. Passenger cars alone account for about half of allthe emissions produced by the transportation sector. In thecase of gasoline vehicles, about 68% of the emissions gener-ated during the entire lifecycle of a car is produced duringdriving. Therefore, improving the fuel efficiency of cars is veryeffective for reducing CO2 emissions.

While the automobile market is losing speed in Japan, NorthAmerica, and Europe, demand for cars is growing in emergingmarkets such as China. The resulting increase in vehicle CO2

emissions is also a great concern. Given this situation, fuelefficiency standards are being raised in North America,Europe, and Japan, and automakers are being required toimprove fuel efficiency in order to reduce vehicle CO2 emis-sions.

Ford Motor’s “Escape Hybrid” Sanyo’s nickel-metal hydride battery system for HEV incorporated in “Escape Hybrid”

Hiroshi IkeuchiHEV Division

Mobile Energy Company

There is growing expectation that hybrid vehicles will helpreduce CO2 emissions. In order to meet these expectations, theurgent task is to further improve the HEV battery. Therefore, wewould like to help protect the global environment by developingand supplying high performance batteries.

* A hybrid vehicle combines more than one energy source, using themseparately or simultaneously to power the car, depending on thecircumstances. Generally, electricity is one of the energy sources, and“hybrid vehicle” is actually short for “hybrid electric vehicle.”

2. Developing rechargeable batteries for hybrid vehicles

Accelerating the development of rechargeable batteries for hybrid ve-hicles, in order to support a future automobile society in harmony withthe global environment



【CO2 Emissions in the Japanese Transportation Sector (FY 2006)】

【Total CO2 emissions per kilometer traveled (during 10/15 mode)】

Source: Prepared based on the JHFC Comprehensive EfficiencyExamination Results Report

* Hybrid electric vehicle (HEV)

0 50 100 150 200（g-CO2/km）

All-electric vehicle

Diesel HEV

Gasoline HEV*

Diesel

Gasoline 193

146

123

89.4

49

Source: Prepared based on materials from the Japanese Ministry of Land,Infrastructure, Transport and Tourism

Aircraft　4.4%

Private passenger cars48.2%

Private trucks17.8%

Commercial trucks 17.9%

Buses 1.8%

Taxis 1.7%

Ships　5.2%

Railways　3.0%

■ Hybrid vehicles are set to become the next-generation of environmentally-conscious cars

Given the problems of global warming and the depletion ofresources worldwide, the automakers are promoting thedevelopment of next-generation environmentally-consciousvehicles. The hybrid vehicle* is the leading technology under-going widespread adoption. By 2012, production is set toreach the 2-million vehicle level, and the market for recharge-able batteries for hybrid vehicles is expected to exceed 200billion yen.

Compared to regular gasoline vehicles, hybrid vehicles havedemonstrated superior gas mileage. The CO2 generated bythe combustion of one liter of gasoline is 2.32 kg. Accordingto one survey, the average distance traveled by cars in Japanis 10,000 km. If a driver replaces his regular gasoline car withan equivalent hybrid vehicle, that person can reduce his CO2

emissions by 700 kg in one year. Since the average annualdistance traveled by car is greater in the US, if hybrid carswere fully adopted in all markets, the CO2 reduction effectwould be even more substantial.

■ Role of Sanyo Electric as a consumerrechargeable battery manufacturer

Sanyo Electric has been mass producing nickel-metal hydridebatteries for hybrid vehicles to supply to automakers such asFord and Honda. Using the battery technology that Sanyo hasdeveloped in various consumer product fields, the company isable to realize the optimal battery systems. Sanyo also hasstrength in its scale and technical capability for large-scaleproduction with consistent quality, and has the capacity tomeet the growing demand.

In order to supply lithium-ion batteries for hybrid vehicleswith a high degree of safety and performance, Sanyo is carry-ing out product development in order to not only reduce thesize, weight and cost of these batteries but also to achieve thenecessary technical performance, including safety, output,durability, and temperature resistance. In the area of safety inparticular, R&D is being promoted into the optimal batterymaterials and cell composition to overcome the severe condi-tions created by automotive use such as impact, heat, andovercharging. In addition to the design of the product itself,Sanyo is simultaneously promoting research for the realizationof high-precision manufacturing and inspection technology inorder to completely prevent any foreign substance fromgetting into the batteries, which may create major problems.

Sanyo Electric’s role is to help protect the global environ-ment, by contributing to the development of environmentally-conscious vehicles through the supply of high-quality safebatteries.

■ Necessary conditions for the populariza-tion of hybrid vehicles

Various issues need to be overcome in order to acceleratethe popularization of hybrid vehicles. Since these vehicles havevarious additional components including an electric motor anda rechargeable battery, they cost more than a gasoline car,which creates the problem of a higher purchase price.

Therefore, the cost of the required rechargeable batteryneeds to be reduced through technological and productioninnovation, in order to close the price gap with gasoline cars,and expand the adoption of hybrid cars.

Another issue is the need to increase the performance andsafety of rechargeable batteries while bringing the cost downat the same time. In the market for hybrid vehicle batteries,the demand is shifting from the currently mainstream nickel-metal hydride batteries to the higher performance lithium-ionbatteries. In addition to increasing the technological ability forsecuring safety as a vehicle battery, the adoption of lithium-ionbatteries, which are also lighter than nickel-metal hydridebatteries, will contribute to greater fuel efficiency throughweight reduction.

Lithium-ion battery system for HEV (under development)

■ Rising world automobile demand and en-vironmental regulations

Today, the transportation sector in Japan, including railways,aircraft, and automobiles, are responsible for 20% of thecountry’s CO2 emissions. Of the CO2 emitted by the transpor-tation sector, 90% comes from automobiles including busesand trucks. Passenger cars alone account for about half of allthe emissions produced by the transportation sector. In thecase of gasoline vehicles, about 68% of the emissions gener-ated during the entire lifecycle of a car is produced duringdriving. Therefore, improving the fuel efficiency of cars is veryeffective for reducing CO2 emissions.

While the automobile market is losing speed in Japan, NorthAmerica, and Europe, demand for cars is growing in emergingmarkets such as China. The resulting increase in vehicle CO2

emissions is also a great concern. Given this situation, fuelefficiency standards are being raised in North America,Europe, and Japan, and automakers are being required toimprove fuel efficiency in order to reduce vehicle CO2 emis-sions.

Ford Motor’s “Escape Hybrid” Sanyo’s nickel-metal hydride battery system for HEV incorporated in “Escape Hybrid”

Hiroshi IkeuchiHEV Division

Mobile Energy Company

There is growing expectation that hybrid vehicles will helpreduce CO2 emissions. In order to meet these expectations, theurgent task is to further improve the HEV battery. Therefore, wewould like to help protect the global environment by developingand supplying high performance batteries.

* A hybrid vehicle combines more than one energy source, using themseparately or simultaneously to power the car, depending on thecircumstances. Generally, electricity is one of the energy sources, and“hybrid vehicle” is actually short for “hybrid electric vehicle.”

2. Developing rechargeable batteries for hybrid vehicles

Accelerating the development of rechargeable batteries for hybrid ve-hicles, in order to support a future automobile society in harmony withthe global environment



【Estimate of Electricity Consumption】

Source: Prepared based on materials from the Japanese Ministry of Economy,Trade and Industry

5 times

47 billion kWh

240 billion kWh

0

50

100

150

200

250Network devicesData centersServersPCs

2025 (Year)2006

【Refrigerant Types and Properties】

Refrigerant types

CO2

HFC

HCFC

CFC(total abolition)

Ozone depletion potential*2

0

0

0.001 - 0.52

0.6 - 1

Global warming potential*3

1

140 - 11,700

120 - 2,400

4,600 - 14,000

（billion kWh）

■ Aiming to reduce the use of HFC green-house gases

Today, HFCs*1 that do not harm the ozone layer are normallyused for insulation or refrigerant for refrigerated beverage show-cases. The use of HFCs has increased as a replacement for otherfluorocarbon gases, which are about to be totally abolished. How-ever, since HFCs are extremely powerful greenhouse gases, theyhave been designated by the Kyoto Protocol as gases to bereduced, and are being regulated by EU directives as well.

The recovery of HFCs and other fluorocarbon gases fromdiscarded products is required by law. However, the current situa-tion is that complete recovery of these gases is difficult, since therecovery rate for fluorocarbon gases from commercial air condi-tioners still remains low across all industries. With the currentsituation even in the industrial sector, it is desirable to use asrefrigerants substances that are found in nature, which will notcause problems even if they leak into the atmosphere. SanyoElectric has been looking at CO2 as one such natural refrigerant,and has been carrying out development in this area since 1998.

■ Success in making CO2 refrigerant com-pressors smaller for more widespread use

While CO2 holds increasing promise as a natural refrigerant, theissue for practical application of this technology has been how tomake the necessary refrigerant compressor smaller. Although CO2

needs to be compressed in order to use it as a refrigerant, itrequires five times the pressure necessary to compress an HFC. Inorder to secure the power to achieve this pressure, a larger com-pressor had to be used. Therefore, the use of CO2 refrigerantcompressors was limited to large-scale applications such as ships.

It was air-conditioner twin rotary technology Sanyo Electric hasbeen developing that solved this problem. Based on this technol-

■ Electricity consumption continues to risein the IT sector

Electricity consumption is steadily rising for servers and otherIT equipment, due to the higher performance of these devicesfor purposes such as video streaming on the Internet. Theissue has become how to reduce the energy required for theequipment to process vast amounts of data, and how tohandle the large amounts of heat produced by the devices.

According to the Ministry of Economy, Trade and Industry,the proportion of electricity consumed by IT equipment acrossJapan in fiscal 2006 was 5% of the national electrical usage.The level of IT electricity consumption will continue to increasein the future. By 2025, it is estimated to rise by 20% in Japan,and the issue of electricity consumption for IT equipment andfacilities is becoming more pressing.

■ Expanding the horizon for CO2 refrigerant compres-sors, and helping to fight against global warming

Based on the compact size and environmental benefits of itsrefrigerant compressor, Sanyo has jointly developed a non-fluorocarbon cassette for beverage showcases with Coca Cola,which is working to reduce its environment impact. The show-cases will first be supplied to the Beijing Olympics, in a quantity of5,000 units.

There are several million refrigerated beverage showcases inoperation worldwide, and the lifespan of this product is about fiveyears. By promoting the use of CO2 refrigerant compressors,Sanyo can contribute greatly to the prevention of global warming,as this technology saves electricity, thereby reducing CO2 emis-sions, and the refrigerant itself has a low greenhouse effect.

In the future, the technology can be applied to not just refriger-ated beverage showcases, but also various other cooling andheating devices including industrial refrigerators and freezers,supermarket showcases, and biomedical equipment. Throughsuch products, we hope to contribute to the prevention of globalwarming.

■ Reducing air-conditioning electricity con-sumption by up to 25% for an entire datacenter

In light of this, the “enegreen” refrigerant-type multi-servercooler is the realization of an idea born from a project todevelop new businesses based on environmental themes,which Sanyo Electric and IBM have been working on since2004. Since this server cooler eliminates about 50% of theserver heat at the source, electricity consumption can bereduced by up to 25% or more, together with the room air-conditioning in the data center.

During the development however, we experienced a lot oftrial and error. While Sanyo Electric had previous experience indelivering air-conditioning systems for data centers, it was thefirst time for us to attach a product directly to the server racks.In order to completely avoid getting water near the IT equip-

ment, we decided to use refrigerant that vaporizes at roomtemperature, rather than water, as the server coolant medium.Since the coolant phase-changes between a liquid and gas, itwas difficult to design a heat exchanger with stable uniformperformance compared to a water-cooled system. Therefore,

■ Contributing to society by working with compa-nies that have expertise in different fields

Comprehensive discussions continued through to the prod-uct release, and during the development process there were alot of operations for which we had no prior experience.Although we started out with a lot of unanswered questions,through technical exchange by the engineers of both compa-nies, we have been able to produce new products andservices. This has provided great ideas for future businessdevelopment, while also increasing the possibilities for tech-nology application.

We would like to create products and services that do moreto protect the global environment, by bringing together theenvironmental and energy technologies of Sanyo Electric, withthe advanced IT technology, experience and expertise of IBMJapan. In the future we think it will be increasingly important totake on the challenge of larger problems, by working withseveral companies with expertise in different fields.*2. The ozone depletion potential (ODP) of a chemical compound is the

relative amount of degradation to the ozone layer it can cause, withCFC-11 being fixed at an ODP of 1. The HCFC and CFC figures arebased on the Japanese Law Concerning the Protection of the OzoneLayer through the Control of Specified Substances and Other Measures.

*3. The global warming potential (GWP) is a relative measure of how mucha greenhouse gas is estimated to contribute to global warming, with CO2

being fixed at a GWP of 1. The CFC and HCFC figures are cited in theIPCC Third Assessment Report (integration value over 100 years). TheHFC figures are based on the Japanese Act on Promotion of GlobalWarming Countermeasures.

*4 Comparison includes the energy saving effect for the non-fluorocarboncassette and the showcase main unit

*1 There are many kinds of fluorocarbon gases. Hydrofluorocarbons (HFCs) donot destroy the ozone layer, and have been used as a replacement forChlorofluorocarbons (CFCs), which have already been completelyabolished, in order to protect the ozone layer.

ogy, the company has developed a unique rotary two-stage com-pressor. By dividing the CO2 compression into two stages, itbecame possible to achieve a more efficient compression designthan used by conventional CO2 compressors. As a result, thethickness of the compressor shell was reduced down to 65%, andthe weight by 50%, thereby realizing a more compact unit. More-over, noise and vibration were also reduced, and power consump-tion was lowered by 16%*4 compared to that for a conventionalrefrigerated showcase of the same type. Due to the compact sizeof the new technology, a beverage showcase using HFC refriger-ant can be reused by just changing the cassette. This means thatthe main body of the showcase does not need to be replaced,offering the added benefit of waste reduction.

it took over one year to develop a heat exchanger that couldwork as well as a water-cooled system.

In order to obtain cooling performance along with greatercooling efficiency, we were able to make the most of ourexpertise accumulated through past development of industrialair conditioners. The answer was to successfully use multipletemperature sensors. By applying the same approach as usedfor optimizing the temperature around people in an air-conditioned room, individual cooling was realized at each heatsource according to the server operation conditions. In thisway, efficient cooling was realized.

By using CO2, a gas found in the natural environment, as arefrigerant, and by saving energy through the optimizationof refrigeration circuits, we developed a non-fluorocarboncassette for refrigerated beverage showcases that has alower environmental impact.

In the future, I want to keep contrib-uting to global environmental protec-tion, by developing products usingour CO2 technology.

Sanyo’s refrigeration and air conditioning technologiesare very advanced, and offer unlimited possibilities. Byfinding solutions to various problems relating to heatingand cooling through the use of more flexible thinking, wewill keep on contributing to globalenvironmental protection throughrefrigerators and air conditioners.

Jun SatoShowcase Development Department

Cold-Chain Business DivisionCommercial Solutions Company

Kazutoyo KagamiProduct Development Department

Airconditioners Business DivisionCommercial Solutions Company

3. Supplying non-fluorocarbon refrigerated beverage showcase cassettes

Expanding the use of natural refrigerant with lessgreenhouse-gas effects, using original two-stagecompression technology

4. Supplying “enegreen” refrigerant-type multi-server coolers

Helping to control rising electricity consumption inthe IT field, by combining the expertise of twocompanies



【Estimate of Electricity Consumption】

Source: Prepared based on materials from the Japanese Ministry of Economy,Trade and Industry

5 times

47 billion kWh

240 billion kWh

0

50

100

150

200

250Network devicesData centersServersPCs

2025 (Year)2006

【Refrigerant Types and Properties】

Refrigerant types

CO2

HFC

HCFC

CFC(total abolition)

Ozone depletion potential*2

0

0

0.001 - 0.52

0.6 - 1

Global warming potential*3

1

140 - 11,700

120 - 2,400

4,600 - 14,000

（billion kWh）

■ Aiming to reduce the use of HFC green-house gases

Today, HFCs*1 that do not harm the ozone layer are normallyused for insulation or refrigerant for refrigerated beverage show-cases. The use of HFCs has increased as a replacement for otherfluorocarbon gases, which are about to be totally abolished. How-ever, since HFCs are extremely powerful greenhouse gases, theyhave been designated by the Kyoto Protocol as gases to bereduced, and are being regulated by EU directives as well.

The recovery of HFCs and other fluorocarbon gases fromdiscarded products is required by law. However, the current situa-tion is that complete recovery of these gases is difficult, since therecovery rate for fluorocarbon gases from commercial air condi-tioners still remains low across all industries. With the currentsituation even in the industrial sector, it is desirable to use asrefrigerants substances that are found in nature, which will notcause problems even if they leak into the atmosphere. SanyoElectric has been looking at CO2 as one such natural refrigerant,and has been carrying out development in this area since 1998.

■ Success in making CO2 refrigerant com-pressors smaller for more widespread use

While CO2 holds increasing promise as a natural refrigerant, theissue for practical application of this technology has been how tomake the necessary refrigerant compressor smaller. Although CO2

needs to be compressed in order to use it as a refrigerant, itrequires five times the pressure necessary to compress an HFC. Inorder to secure the power to achieve this pressure, a larger com-pressor had to be used. Therefore, the use of CO2 refrigerantcompressors was limited to large-scale applications such as ships.

It was air-conditioner twin rotary technology Sanyo Electric hasbeen developing that solved this problem. Based on this technol-

■ Electricity consumption continues to risein the IT sector

Electricity consumption is steadily rising for servers and otherIT equipment, due to the higher performance of these devicesfor purposes such as video streaming on the Internet. Theissue has become how to reduce the energy required for theequipment to process vast amounts of data, and how tohandle the large amounts of heat produced by the devices.

According to the Ministry of Economy, Trade and Industry,the proportion of electricity consumed by IT equipment acrossJapan in fiscal 2006 was 5% of the national electrical usage.The level of IT electricity consumption will continue to increasein the future. By 2025, it is estimated to rise by 20% in Japan,and the issue of electricity consumption for IT equipment andfacilities is becoming more pressing.

■ Expanding the horizon for CO2 refrigerant compres-sors, and helping to fight against global warming

Based on the compact size and environmental benefits of itsrefrigerant compressor, Sanyo has jointly developed a non-fluorocarbon cassette for beverage showcases with Coca Cola,which is working to reduce its environment impact. The show-cases will first be supplied to the Beijing Olympics, in a quantity of5,000 units.

There are several million refrigerated beverage showcases inoperation worldwide, and the lifespan of this product is about fiveyears. By promoting the use of CO2 refrigerant compressors,Sanyo can contribute greatly to the prevention of global warming,as this technology saves electricity, thereby reducing CO2 emis-sions, and the refrigerant itself has a low greenhouse effect.

In the future, the technology can be applied to not just refriger-ated beverage showcases, but also various other cooling andheating devices including industrial refrigerators and freezers,supermarket showcases, and biomedical equipment. Throughsuch products, we hope to contribute to the prevention of globalwarming.

■ Reducing air-conditioning electricity con-sumption by up to 25% for an entire datacenter

In light of this, the “enegreen” refrigerant-type multi-servercooler is the realization of an idea born from a project todevelop new businesses based on environmental themes,which Sanyo Electric and IBM have been working on since2004. Since this server cooler eliminates about 50% of theserver heat at the source, electricity consumption can bereduced by up to 25% or more, together with the room air-conditioning in the data center.

During the development however, we experienced a lot oftrial and error. While Sanyo Electric had previous experience indelivering air-conditioning systems for data centers, it was thefirst time for us to attach a product directly to the server racks.In order to completely avoid getting water near the IT equip-

ment, we decided to use refrigerant that vaporizes at roomtemperature, rather than water, as the server coolant medium.Since the coolant phase-changes between a liquid and gas, itwas difficult to design a heat exchanger with stable uniformperformance compared to a water-cooled system. Therefore,

■ Contributing to society by working with compa-nies that have expertise in different fields

Comprehensive discussions continued through to the prod-uct release, and during the development process there were alot of operations for which we had no prior experience.Although we started out with a lot of unanswered questions,through technical exchange by the engineers of both compa-nies, we have been able to produce new products andservices. This has provided great ideas for future businessdevelopment, while also increasing the possibilities for tech-nology application.

We would like to create products and services that do moreto protect the global environment, by bringing together theenvironmental and energy technologies of Sanyo Electric, withthe advanced IT technology, experience and expertise of IBMJapan. In the future we think it will be increasingly important totake on the challenge of larger problems, by working withseveral companies with expertise in different fields.*2. The ozone depletion potential (ODP) of a chemical compound is the

relative amount of degradation to the ozone layer it can cause, withCFC-11 being fixed at an ODP of 1. The HCFC and CFC figures arebased on the Japanese Law Concerning the Protection of the OzoneLayer through the Control of Specified Substances and Other Measures.

*3. The global warming potential (GWP) is a relative measure of how mucha greenhouse gas is estimated to contribute to global warming, with CO2

being fixed at a GWP of 1. The CFC and HCFC figures are cited in theIPCC Third Assessment Report (integration value over 100 years). TheHFC figures are based on the Japanese Act on Promotion of GlobalWarming Countermeasures.

*4 Comparison includes the energy saving effect for the non-fluorocarboncassette and the showcase main unit

*1 There are many kinds of fluorocarbon gases. Hydrofluorocarbons (HFCs) donot destroy the ozone layer, and have been used as a replacement forChlorofluorocarbons (CFCs), which have already been completelyabolished, in order to protect the ozone layer.

ogy, the company has developed a unique rotary two-stage com-pressor. By dividing the CO2 compression into two stages, itbecame possible to achieve a more efficient compression designthan used by conventional CO2 compressors. As a result, thethickness of the compressor shell was reduced down to 65%, andthe weight by 50%, thereby realizing a more compact unit. More-over, noise and vibration were also reduced, and power consump-tion was lowered by 16%*4 compared to that for a conventionalrefrigerated showcase of the same type. Due to the compact sizeof the new technology, a beverage showcase using HFC refriger-ant can be reused by just changing the cassette. This means thatthe main body of the showcase does not need to be replaced,offering the added benefit of waste reduction.

it took over one year to develop a heat exchanger that couldwork as well as a water-cooled system.

In order to obtain cooling performance along with greatercooling efficiency, we were able to make the most of ourexpertise accumulated through past development of industrialair conditioners. The answer was to successfully use multipletemperature sensors. By applying the same approach as usedfor optimizing the temperature around people in an air-conditioned room, individual cooling was realized at each heatsource according to the server operation conditions. In thisway, efficient cooling was realized.

By using CO2, a gas found in the natural environment, as arefrigerant, and by saving energy through the optimizationof refrigeration circuits, we developed a non-fluorocarboncassette for refrigerated beverage showcases that has alower environmental impact.

In the future, I want to keep contrib-uting to global environmental protec-tion, by developing products usingour CO2 technology.

Sanyo’s refrigeration and air conditioning technologiesare very advanced, and offer unlimited possibilities. Byfinding solutions to various problems relating to heatingand cooling through the use of more flexible thinking, wewill keep on contributing to globalenvironmental protection throughrefrigerators and air conditioners.

Jun SatoShowcase Development Department

Cold-Chain Business DivisionCommercial Solutions Company

Kazutoyo KagamiProduct Development Department

Airconditioners Business DivisionCommercial Solutions Company

3. Supplying non-fluorocarbon refrigerated beverage showcase cassettes

Expanding the use of natural refrigerant with lessgreenhouse-gas effects, using original two-stagecompression technology

4. Supplying “enegreen” refrigerant-type multi-server coolers

Helping to control rising electricity consumption inthe IT field, by combining the expertise of twocompanies

Human Resources Development to Become a “Leading Provider of Environment- and Energy-related Products”


Participant’s Opinion


The foundation of the company is its people: improve individuals,and maximize skills and talents for the benefit of all.

Human Resources Philosophy

The individual who understands and fills each role whilecontinually seeking ways to improve and innovate.

The Model Employee

■ Developing people resources that recog-nize their roles and continually innovate

In recent years, social and business environments havechanged at an astounding pace. In order for companies torapidly respond to changing market needs, it is essential tohave human resources with the ability to look at things and thefuture with a broader perspective.

At Sanyo Electric, we see our employees as invaluable humanresources, and continue to create programs that can developand utilize the abilities of each and every person, while strivingto establish this as part of our corporate culture. Sanyo wantsits employees to recognize their own roles, always take onchallenges without the fear of failure, and continually innovate.These are the ongoing hopes and expectations that Sanyo hasfor its people.

It is necessary to develop these kinds of human resourcesand their abilities in order to succeed in the face of globalcompetition, and to create products and services thatcontribute to society.

■ Sharing goals, and promoting systems forability development

Support programs are necessary in order to broaden thepossibilities for working people. In April 2008, Sanyo Electric’snew personnel system went into full-scale operation.

One of the changes with the new system is that employeesare now evaluated based on personal goals set for the longerperiods of three or five years. This is because a long-termperspective is necessary in order for people to complete acertain job and produce results. Another change is the break-ing down of company-wide targets into departmental targets,and then clarifying individual roles in the company, and whatabilities are needed for those roles. Over the last decade orso, we think the companies have relied too much on individu-

In order to raise the overall strength of the Sanyo Group asglobal entity, it is important to share the same values andgoals, to improve management abilities, and to promote inter-action between people in the group. Consequently, every yearSanyo holds an International Training Course (ITC) for upper-rank managers from principal subsidiaries and affiliates outsideJapan.

A total of 13 people from 9 countries including Indonesia,China, and the US participated in the fiscal 2007 ITC. Theparticipants reviewed the current situation of Sanyo Electricand its business environment, as well as the company’s futuredirections. They then investigated what they need to do attheir own companies to take on the challenge of innovation,from a global perspective that includes the entire Sanyo Groupand not just their individual companies.

As a new experiment, an Exchange Symposium was heldbased on the theme of “Personal Roles and Teamwork Issues.”The ITC participants and selected Sanyo Electric employeesfrom Japan held a joint discussion on methods to resolve suchissues, and mutual understanding was deepened.

In order to provide innovative products and services that cancontribute to a sustainable society, market needs and socialconditions must be rapidly ascertained, and ways to meet thesituation must be devised. Consequently, corporate sectionsneed to function together organically rather than operating inisolation, and it is necessary to develop highly specializedpositions that can execute business horizontally across theorganization.

Given this necessity, an Advanced Specialist Training wasconducted in fiscal 2007 in order to promote horizontalunderstanding of the functions that make up the supply chain,namely, research, development, product planning, design,purchasing, manufacturing, and sales. The participants set

By attending the international train-ing course and meeting membersfrom other Sanyo companies from allover the world, I was able to betterunderstand the role of other depart-ments and also assess myself againstthe international level of Sanyo man-agement. I was also able to re-confirm the basics of profitability andI can now calculate Sanyo's benefitfor “improvement-suggestions". Byutilizing what I learned in the trainingin my daily work I have also learned to delegate more andfocus on more relevant work. I recommend this trainingcourse to my colleagues and subordinates for developingpersonal skills and contributing to a globally growing SanyoCompany.

Christopher FietzekSANYO Component Europe GmbH

It was a beneficial and stimulatingtraining course. I learned a lot aboutworking with people from depart-ments that I usually do not come incontact with. I once again realizedthat Sanyo has a lot of different tech-nologies. By bringing together thesetechnologies, I am convinced thatwonderful products will be created.

Katsuharu SuematsuSound and Communication Section

Product Strategy Department,Sales H.Q.

SANYO Semiconductor Co., Ltd.

Advanced Specialist Training

specific targets for financial result contribution, behaviorchange, and awareness reform at each of the four trainingsessions. They also aimed for the realization of businessexecution horizontally across departments for each type ofjob, and carried out group discussions and presentations onactivities and issues that need to be addressed.

als to develop their own abilities through correspondencecourses or e-learning on the Internet. The time has come forcompanies to reconsider what skills they want their employeesto acquire.

While ongoing skills development is being carried out for allemployees, and the main areas are rank- and ability-specifictraining, it is important that they function organically. In fiscal2008, Sanyo will carry out various types of training in the prior-ity areas of 1) technology, marketing, and sales regions, 2)management skills, 3) global response ability, and 4) raisingbasic skills of human resources with three year work experi-ence.

International Training Course

Global manager training to increase the overall strength of the Sanyo Group

Advanced Specialist Training to realize inter-organizational business execution

Developing invaluable human resources

In order to create groundbreaking products and services,Sanyo is developing human resources that continually innovate.





The foundation of the company is its people: improve individuals,and maximize skills and talents for the benefit of all.

Human Resources Philosophy

The individual who understands and fills each role whilecontinually seeking ways to improve and innovate.

The Model Employee

■ Developing people resources that recog-nize their roles and continually innovate

In recent years, social and business environments havechanged at an astounding pace. In order for companies torapidly respond to changing market needs, it is essential tohave human resources with the ability to look at things and thefuture with a broader perspective.

At Sanyo Electric, we see our employees as invaluable humanresources, and continue to create programs that can developand utilize the abilities of each and every person, while strivingto establish this as part of our corporate culture. Sanyo wantsits employees to recognize their own roles, always take onchallenges without the fear of failure, and continually innovate.These are the ongoing hopes and expectations that Sanyo hasfor its people.

It is necessary to develop these kinds of human resourcesand their abilities in order to succeed in the face of globalcompetition, and to create products and services thatcontribute to society.

■ Sharing goals, and promoting systems forability development

Support programs are necessary in order to broaden thepossibilities for working people. In April 2008, Sanyo Electric’snew personnel system went into full-scale operation.

One of the changes with the new system is that employeesare now evaluated based on personal goals set for the longerperiods of three or five years. This is because a long-termperspective is necessary in order for people to complete acertain job and produce results. Another change is the break-ing down of company-wide targets into departmental targets,and then clarifying individual roles in the company, and whatabilities are needed for those roles. Over the last decade orso, we think the companies have relied too much on individu-

In order to raise the overall strength of the Sanyo Group asglobal entity, it is important to share the same values andgoals, to improve management abilities, and to promote inter-action between people in the group. Consequently, every yearSanyo holds an International Training Course (ITC) for upper-rank managers from principal subsidiaries and affiliates outsideJapan.

A total of 13 people from 9 countries including Indonesia,China, and the US participated in the fiscal 2007 ITC. Theparticipants reviewed the current situation of Sanyo Electricand its business environment, as well as the company’s futuredirections. They then investigated what they need to do attheir own companies to take on the challenge of innovation,from a global perspective that includes the entire Sanyo Groupand not just their individual companies.

As a new experiment, an Exchange Symposium was heldbased on the theme of “Personal Roles and Teamwork Issues.”The ITC participants and selected Sanyo Electric employeesfrom Japan held a joint discussion on methods to resolve suchissues, and mutual understanding was deepened.

In order to provide innovative products and services that cancontribute to a sustainable society, market needs and socialconditions must be rapidly ascertained, and ways to meet thesituation must be devised. Consequently, corporate sectionsneed to function together organically rather than operating inisolation, and it is necessary to develop highly specializedpositions that can execute business horizontally across theorganization.

Given this necessity, an Advanced Specialist Training wasconducted in fiscal 2007 in order to promote horizontalunderstanding of the functions that make up the supply chain,namely, research, development, product planning, design,purchasing, manufacturing, and sales. The participants set

By attending the international train-ing course and meeting membersfrom other Sanyo companies from allover the world, I was able to betterunderstand the role of other depart-ments and also assess myself againstthe international level of Sanyo man-agement. I was also able to re-confirm the basics of profitability andI can now calculate Sanyo's benefitfor “improvement-suggestions". Byutilizing what I learned in the trainingin my daily work I have also learned to delegate more andfocus on more relevant work. I recommend this trainingcourse to my colleagues and subordinates for developingpersonal skills and contributing to a globally growing SanyoCompany.

Christopher FietzekSANYO Component Europe GmbH

It was a beneficial and stimulatingtraining course. I learned a lot aboutworking with people from depart-ments that I usually do not come incontact with. I once again realizedthat Sanyo has a lot of different tech-nologies. By bringing together thesetechnologies, I am convinced thatwonderful products will be created.

Katsuharu SuematsuSound and Communication Section

Product Strategy Department,Sales H.Q.


Advanced Specialist Training

specific targets for financial result contribution, behaviorchange, and awareness reform at each of the four trainingsessions. They also aimed for the realization of businessexecution horizontally across departments for each type ofjob, and carried out group discussions and presentations onactivities and issues that need to be addressed.

als to develop their own abilities through correspondencecourses or e-learning on the Internet. The time has come forcompanies to reconsider what skills they want their employeesto acquire.

While ongoing skills development is being carried out for allemployees, and the main areas are rank- and ability-specifictraining, it is important that they function organically. In fiscal2008, Sanyo will carry out various types of training in the prior-ity areas of 1) technology, marketing, and sales regions, 2)management skills, 3) global response ability, and 4) raisingbasic skills of human resources with three year work experi-ence.

International Training Course

Global manager training to increase the overall strength of the Sanyo Group

Advanced Specialist Training to realize inter-organizational business execution

Developing invaluable human resources

In order to create groundbreaking products and services,Sanyo is developing human resources that continually innovate.


19 SANYO Sustainability Report 2008 20SANYO Sustainability Report 2008

Thanks to the advancement of tools such as computer-aideddesign and simulation in recent years, the amount of work beingcarried out by a single engineer is increasing, and the productdevelopment period has also been drastically shortened. How-ever, the drawback of this is that it has become harder to handdown technology and expertise as part of daily operations. There-fore, Sanyo has set up a “Refrigeration School” with the goal ofinternally retaining and transferring to younger employees theskills, technology and expertise that Sanyo Electric has developedover many years. This program is designed to teach refrigerationand air-conditioning technologies that are useful in practical appli-cations, and that are difficult to convey just through written mate-rials.

The Refrigeration School not only teaches the basics of thisspecialized field, but also wisdom and approaches that go beyondmere technology, gained through years of trial and error. Ongo-ing lectures are also given on the ability to design from a compre-hensive perspective, in order to pass this knowledge on.

Even though participation is voluntary, over 870 employees havetaken part in the program during the year since it began in May2007. This is because the engineers are enthusiastic about theirown personal growth, and the instructors have been able to givelectures that exceed participants’ expectations. The younger engi-neers are very interested in what the accomplished senior engi-neers have to say.P r o v i d i n g t h i sprogram for employ-ees to learn frommaster engineers isalso an effective wayt o s e c u r e g o o dhuman resources.

My job is to design compressormotors, and I am aiming to increaseefficiency in this area. I decided toparticipate in the Refrigeration Schoolin order to further improve motorperformance through a better under-standing of the technologies surround-ing my field. In Refrigeration School theinstructor explains many points aboutwhich I have questions but could notask anyone due to my busy dailyschedule. We receive detailed knowl-edge and a lot of expertise that you can only get through yearsof experience. Through the program I came to realize thatactive communication in daily activities is important for exper-tise absorption.

　Yoshitomo NakayamaCompressor Development

Engineering DepartmentCompressor Division

Commercial Solutions Company

Sanyo Electric’s strength in the com-mercial business is its ability to producea synergy effect among the compres-sor, air-conditioning, biochemical engi-neering, cold chain and other technolo-gies that is not possible at single-technology manufacturers.

In the past, I found training work incooperation with different businessfields to be difficult, and sometimesirritating. However, I was really glad to be able to start givinglectures in cooperation with the compressor and appliancefields at Refrigeration School. While the method of one-to-oneinstruction previously used is now difficult to realize, lectures area useful way to systematize technology transmission.

Kazuo TakemasaHVAC Technology

Development CenterCommercial Solutions Company


Instructor’s Opinion

Refrigeration School class

Shinya NagamachiGeneral Affairs/Human Resource H.Q.

As a leading provider of Environment- and Energy-related productswith a brand vision of Think GAIA, Sanyo must foster the personalgrowth of its employees in order to obtain sustainable growth for thecompany. In addition to rank-specific training, Sanyo is also expandingits training according to specialized abilities. The aim is for all em-ployees in the Sanyo Group to act on their own initiatives in orderto become a company that contributes to the world.

The Sanyo Group carries out its business activities in cooperation with

various stakeholders, including customers, business partners,

employees, stockholders, investors, local communities, NGOs, and

NPOs. Surrounding this is the irreplaceable global environment, with

which we must live in harmony.

In order to fulfill its social responsibilities, the Sanyo Group must carry

out its business activities from a sound management foundation, while

maintaining good communication with its various stakeholders. It has

the responsibility to not only realize sustainable growth for the

company, but also contribute to the development of a sustainable

society. Sanyo needs to implement measures in all its processes to

help protect the global environment, and thereby minimize its burden

on the planet.

The following is a report on the management structures and initiatives

that are considered important for the Sanyo Group to fulfill its social

responsibilities.


Initiatives to address social issuesEmployees

Helping to create a prosperous society through business activities

Foundation for business activities

Increasingcorporate value

Customers

Business partners

Local communities NGOs/NPOs

Stockholdersand investors

Environmental measures, development ofrenewable energy products, providing highquality products and services, and providingvalue and satisfaction to customers, etc.

Global environmental protection, social contri-bution activities, etc.

Corporate governance, internal control, com-pliance, and risk management, etc.

High expectations for the Refrigeration School as a place for core technology transmission


19 SANYO Sustainability Report 2008 20SANYO Sustainability Report 2008

Thanks to the advancement of tools such as computer-aideddesign and simulation in recent years, the amount of work beingcarried out by a single engineer is increasing, and the productdevelopment period has also been drastically shortened. How-ever, the drawback of this is that it has become harder to handdown technology and expertise as part of daily operations. There-fore, Sanyo has set up a “Refrigeration School” with the goal ofinternally retaining and transferring to younger employees theskills, technology and expertise that Sanyo Electric has developedover many years. This program is designed to teach refrigerationand air-conditioning technologies that are useful in practical appli-cations, and that are difficult to convey just through written mate-rials.

The Refrigeration School not only teaches the basics of thisspecialized field, but also wisdom and approaches that go beyondmere technology, gained through years of trial and error. Ongo-ing lectures are also given on the ability to design from a compre-hensive perspective, in order to pass this knowledge on.

Even though participation is voluntary, over 870 employees havetaken part in the program during the year since it began in May2007. This is because the engineers are enthusiastic about theirown personal growth, and the instructors have been able to givelectures that exceed participants’ expectations. The younger engi-neers are very interested in what the accomplished senior engi-neers have to say.P r o v i d i n g t h i sprogram for employ-ees to learn frommaster engineers isalso an effective wayt o s e c u r e g o o dhuman resources.

My job is to design compressormotors, and I am aiming to increaseefficiency in this area. I decided toparticipate in the Refrigeration Schoolin order to further improve motorperformance through a better under-standing of the technologies surround-ing my field. In Refrigeration School theinstructor explains many points aboutwhich I have questions but could notask anyone due to my busy dailyschedule. We receive detailed knowl-edge and a lot of expertise that you can only get through yearsof experience. Through the program I came to realize thatactive communication in daily activities is important for exper-tise absorption.

　Yoshitomo NakayamaCompressor Development

Engineering DepartmentCompressor Division

Commercial Solutions Company

Sanyo Electric’s strength in the com-mercial business is its ability to producea synergy effect among the compres-sor, air-conditioning, biochemical engi-neering, cold chain and other technolo-gies that is not possible at single-technology manufacturers.

In the past, I found training work incooperation with different businessfields to be difficult, and sometimesirritating. However, I was really glad to be able to start givinglectures in cooperation with the compressor and appliancefields at Refrigeration School. While the method of one-to-oneinstruction previously used is now difficult to realize, lectures area useful way to systematize technology transmission.

Kazuo TakemasaHVAC Technology

Development CenterCommercial Solutions Company


Instructor’s Opinion

Refrigeration School class

Shinya NagamachiGeneral Affairs/Human Resource H.Q.

As a leading provider of Environment- and Energy-related productswith a brand vision of Think GAIA, Sanyo must foster the personalgrowth of its employees in order to obtain sustainable growth for thecompany. In addition to rank-specific training, Sanyo is also expandingits training according to specialized abilities. The aim is for all em-ployees in the Sanyo Group to act on their own initiatives in orderto become a company that contributes to the world.

The Sanyo Group carries out its business activities in cooperation with

various stakeholders, including customers, business partners,

employees, stockholders, investors, local communities, NGOs, and

NPOs. Surrounding this is the irreplaceable global environment, with

which we must live in harmony.

In order to fulfill its social responsibilities, the Sanyo Group must carry

out its business activities from a sound management foundation, while

maintaining good communication with its various stakeholders. It has

the responsibility to not only realize sustainable growth for the

company, but also contribute to the development of a sustainable

society. Sanyo needs to implement measures in all its processes to

help protect the global environment, and thereby minimize its burden

on the planet.

The following is a report on the management structures and initiatives

that are considered important for the Sanyo Group to fulfill its social

responsibilities.


Initiatives to address social issuesEmployees

Helping to create a prosperous society through business activities

Foundation for business activities

Increasingcorporate value

Customers

Business partners

Local communities NGOs/NPOs

Stockholdersand investors

Environmental measures, development ofrenewable energy products, providing highquality products and services, and providingvalue and satisfaction to customers, etc.

Global environmental protection, social contri-bution activities, etc.

Corporate governance, internal control, com-pliance, and risk management, etc.

High expectations for the Refrigeration School as a place for core technology transmission

Management


Board of Directors

Stockholders’ Meeting

Accounting A

uditors

Board of AuditorsDirectors　 Outside Directors

Special Committees

Executive Division

Internal Auditing Division

Corporate Audit Office

Determine basic policies for internal control system development and operation Personnel/Nominating Committee

Compensation Committee

Audit/Governance Committee

Internal control system development and operation●Risk management●Compliance promotion●IT governance, etc.

President, Officers

Business DivisionRelated Companies

Inspect status of internal control system development and operation

Evaluates internal control and assists in its improvement

Develop and operate internal control system

Deliberate on internal control-related subjects in respective areas of specialty

Election and removal

Coordination

Coordination


Coordination


Election/removal, supervision

Audit

Audit

Reports

Recommendations/ proposals, reports

Internal audit

Audit

Corporate AuditorsOutside Corporate Auditors

Head Office

Internal companies

Committee name Main deliberation area①Agenda items to be submitted to the General Meeting

of Stockholders relating to director dismissal, selection of director candidates

①Agenda items to be submitted to the General Meeting of Stockholders relating to the total amount of director compensation

①Agenda items relating to internal control (especially group-wide internal control) and corporate governance

②Agenda items relating to compliance hotline reports and internal audit results

②Individual board member (and officer) compensation (policy determination, calculation method, etc.)

Personnel/Nominating Committee


②Important agenda items relating to executive personnel affairs necessary for management execution


■ Board Members and Board of DirectorsThe Company holds regular monthly meetings of the Board

of Directors, to make important decisions and overseebusiness execution by executives. The resolution of certainimportant matters requires the approval of more thantwo-thirds of the total Board.

To facilitate careful deliberation at such meetings andimprove management efficiency, all board members attendthe Steering Committee, which are held at least twice amonth. The Steering Committee preliminarily review items onthe agenda for the meeting of the Board of Directors, andmake swift decisions regarding fundamental and importantsubjects relating to certain business implementations.

In fiscal 2007, Board of Directors’ meetings were held 27times, and the average attendance rate for outside directorswas 87%. As of June 2008, the Board of Directors comprisesnine directors, two of whom are outside directors. These twodirectors were appointed by a resolution of the generalstockholders’ meeting, and were nominated by underwritersfrom capital increase through issuance of preferred stocks tothird parties (fiscal 2005). The purpose was to have experts inthe areas of investment, finance, and management strategy,participate in the Board of Directors.

■ Corporate Auditors and Board of AuditorsBased on the Japanese Company Law, the Company has a

Board of Auditors. The Corporate Auditors attend Board ofDirectors’ meetings and other significant meetings, inspectimportant documents of decisions and receive reports frominternal audit sections and other relevant departments.Through these activities, the Corporate Auditors stringentlymonitor the performance of the directors. The CorporateAuditors also inquire into the auditing policies and plans of theaccounting auditors, and receive reports and explanations onthe results of audits whenever they are performed, so as toensure mutual coordination with the accounting auditors.

After problems regarding the voluntary amendment of previ-ous financial statements, Sanyo implemented regular financialinvestigation meetings attended by the accounting auditors,the Corporate Auditors, and the accounting department inorder to share information while identifying and resolving anyaccounting issues.

In fiscal 2007, the Board of Auditors met 19 times, and theaverage attendance rate for outside auditors was 96%. As ofJune 2008, the Board of Auditors comprises six corporateauditors, three of whom are outside auditors.

■ Special CommitteesSanyo has three special-purpose committees: the

Personnel/Nominating Committee, the Compensation Com-mittee, and the Audit/Governance Committee. With the inclu-sion of members who are outside experts, these committeesdiscuss specialized matters relating to internal control, makerecommendations and prepare reports to the Board of Direc-tors. The main areas of deliberation for these committees areas follows.

■ Internal Control SystemIn order to improve and strengthen its internal controls,

Sanyo has established a position in charge of this areaincluding observing the relevant laws relating to businessactivities, as well as improving effectiveness and efficiency ofbusinesses and ensuring financial report reliability. In order toascertain internal control activities in a unified way, in October2007, the company established an Internal Control Office, andis promoting the implementation of an internal control systemacross the group. Sanyo is also detecting and resolving anyinternal control deficiencies through internal audits by theinternal audit sections.

Now that the Japanese Financial Instruments and ExchangeLaw has taken effect, Sanyo is obligated to submit internalcontrol reports as a listed company.

Specifically, Sanyo must carry out self evaluations and internalaudits regarding implementation conditions for its internalaudit system in order to ensure the reliability of financialreports. The company must also prepare internal controlreports, and submit auditor-prepared internal control reportsalong with financial statements. Sanyo’s Internal Control Officeis mainly involved in the selection of internal control promotionstaff in the head office, internal companies, subsidiaries andaffiliated companies. The office also identifies problems acrossthe group, while promoting evaluation of internal controlimplementation and operation, progress management, trainingof staff, and other measures.

Report On Amendments to Previous Financial StatementsSanyo voluntarily amended its preliminary releases for business

result (tanshin) for the period ending March 31, 2001 through theperiod ending September 30, 2007. It also amended its financialstatements for the year ending March 31, 2003 through the yearending March 31, 2007.

The reason for the amendment of previous financial statementswas an accounting problem whereby the securities impairmentloss for associated companies was not handled according to therelevant accounting standards and practical guidelines.

As a result of the extremely serious situation that necessitatedthe amendment of previous financial statements, Sanyo hasundertaken a full investigation of the matter, and is taking internalmeasures to prevent any possible recurrence of this kind of prob-lem. In addition, the company is further strengthening its internalcontrols, and is making every effort to restore the confidence ofall stakeholders, including suppliers and stockholders, as soon aspossible.

■ Basic Approach to Corporate GovernanceSanyo believes that the improvement of corporate gover-

nance is essential for putting its management philosophy intopractice and increasing corporate value. Therefore it isstrengthening its internal control system based on sound man-agement systems, and is securing management transparencythrough suitable and timely information disclosure.For Sanyo, compliance is an important foundation for fulfilling

its social responsibilities, and the company understands thatthorough compliance is essential for the continuation of busi-ness activities. In addition to improving its own corporate gov-ernance, Sanyo is actively promoting compliance managementthroughout the group. The Sanyo Electric Group Principles ofConduct have been established as a policy that must befollowed by all group executives and employees. It requiresthem to not only observe all relevant laws and internal rules,but also to comply with a wide range of corporate ethics. Aspecific code of conduct has also been established in order tocarry out the Principles of Conduct, and the group executivesand employees have been made well aware of this code.

ManagementIn order to build good relations with stakeholders and increasecorporate value, Sanyo is striving for sound company manage-ment that is more efficient and transparent, along with improvedinternal controls.

■Management System and Internal Control System

Corporate Governance→　www.sanyo.com/corporate/profile/governance.html

access

Corporate Governance

Management


Board of Directors

Stockholders’ Meeting

Accounting A

uditors

Board of AuditorsDirectors　 Outside Directors

Special Committees

Executive Division

Internal Auditing Division

Corporate Audit Office

Determine basic policies for internal control system development and operation Personnel/Nominating Committee



Internal control system development and operation●Risk management●Compliance promotion●IT governance, etc.

President, Officers

Business DivisionRelated Companies

Inspect status of internal control system development and operation

Evaluates internal control and assists in its improvement

Develop and operate internal control system

Deliberate on internal control-related subjects in respective areas of specialty


Coordination

Coordination


Coordination


Election/removal, supervision

Audit

Audit

Reports

Recommendations/ proposals, reports

Internal audit

Audit

Corporate AuditorsOutside Corporate Auditors

Head Office

Internal companies

Committee name Main deliberation area①Agenda items to be submitted to the General Meeting

of Stockholders relating to director dismissal, selection of director candidates

①Agenda items to be submitted to the General Meeting of Stockholders relating to the total amount of director compensation

①Agenda items relating to internal control (especially group-wide internal control) and corporate governance

②Agenda items relating to compliance hotline reports and internal audit results

②Individual board member (and officer) compensation (policy determination, calculation method, etc.)

Personnel/Nominating Committee


②Important agenda items relating to executive personnel affairs necessary for management execution


■ Board Members and Board of DirectorsThe Company holds regular monthly meetings of the Board

of Directors, to make important decisions and overseebusiness execution by executives. The resolution of certainimportant matters requires the approval of more thantwo-thirds of the total Board.

To facilitate careful deliberation at such meetings andimprove management efficiency, all board members attendthe Steering Committee, which are held at least twice amonth. The Steering Committee preliminarily review items onthe agenda for the meeting of the Board of Directors, andmake swift decisions regarding fundamental and importantsubjects relating to certain business implementations.

In fiscal 2007, Board of Directors’ meetings were held 27times, and the average attendance rate for outside directorswas 87%. As of June 2008, the Board of Directors comprisesnine directors, two of whom are outside directors. These twodirectors were appointed by a resolution of the generalstockholders’ meeting, and were nominated by underwritersfrom capital increase through issuance of preferred stocks tothird parties (fiscal 2005). The purpose was to have experts inthe areas of investment, finance, and management strategy,participate in the Board of Directors.

■ Corporate Auditors and Board of AuditorsBased on the Japanese Company Law, the Company has a

Board of Auditors. The Corporate Auditors attend Board ofDirectors’ meetings and other significant meetings, inspectimportant documents of decisions and receive reports frominternal audit sections and other relevant departments.Through these activities, the Corporate Auditors stringentlymonitor the performance of the directors. The CorporateAuditors also inquire into the auditing policies and plans of theaccounting auditors, and receive reports and explanations onthe results of audits whenever they are performed, so as toensure mutual coordination with the accounting auditors.

After problems regarding the voluntary amendment of previ-ous financial statements, Sanyo implemented regular financialinvestigation meetings attended by the accounting auditors,the Corporate Auditors, and the accounting department inorder to share information while identifying and resolving anyaccounting issues.

In fiscal 2007, the Board of Auditors met 19 times, and theaverage attendance rate for outside auditors was 96%. As ofJune 2008, the Board of Auditors comprises six corporateauditors, three of whom are outside auditors.

■ Special CommitteesSanyo has three special-purpose committees: the

Personnel/Nominating Committee, the Compensation Com-mittee, and the Audit/Governance Committee. With the inclu-sion of members who are outside experts, these committeesdiscuss specialized matters relating to internal control, makerecommendations and prepare reports to the Board of Direc-tors. The main areas of deliberation for these committees areas follows.

■ Internal Control SystemIn order to improve and strengthen its internal controls,

Sanyo has established a position in charge of this areaincluding observing the relevant laws relating to businessactivities, as well as improving effectiveness and efficiency ofbusinesses and ensuring financial report reliability. In order toascertain internal control activities in a unified way, in October2007, the company established an Internal Control Office, andis promoting the implementation of an internal control systemacross the group. Sanyo is also detecting and resolving anyinternal control deficiencies through internal audits by theinternal audit sections.

Now that the Japanese Financial Instruments and ExchangeLaw has taken effect, Sanyo is obligated to submit internalcontrol reports as a listed company.

Specifically, Sanyo must carry out self evaluations and internalaudits regarding implementation conditions for its internalaudit system in order to ensure the reliability of financialreports. The company must also prepare internal controlreports, and submit auditor-prepared internal control reportsalong with financial statements. Sanyo’s Internal Control Officeis mainly involved in the selection of internal control promotionstaff in the head office, internal companies, subsidiaries andaffiliated companies. The office also identifies problems acrossthe group, while promoting evaluation of internal controlimplementation and operation, progress management, trainingof staff, and other measures.

Report On Amendments to Previous Financial StatementsSanyo voluntarily amended its preliminary releases for business

result (tanshin) for the period ending March 31, 2001 through theperiod ending September 30, 2007. It also amended its financialstatements for the year ending March 31, 2003 through the yearending March 31, 2007.

The reason for the amendment of previous financial statementswas an accounting problem whereby the securities impairmentloss for associated companies was not handled according to therelevant accounting standards and practical guidelines.

As a result of the extremely serious situation that necessitatedthe amendment of previous financial statements, Sanyo hasundertaken a full investigation of the matter, and is taking internalmeasures to prevent any possible recurrence of this kind of prob-lem. In addition, the company is further strengthening its internalcontrols, and is making every effort to restore the confidence ofall stakeholders, including suppliers and stockholders, as soon aspossible.

■ Basic Approach to Corporate GovernanceSanyo believes that the improvement of corporate gover-

nance is essential for putting its management philosophy intopractice and increasing corporate value. Therefore it isstrengthening its internal control system based on sound man-agement systems, and is securing management transparencythrough suitable and timely information disclosure.For Sanyo, compliance is an important foundation for fulfilling

its social responsibilities, and the company understands thatthorough compliance is essential for the continuation of busi-ness activities. In addition to improving its own corporate gov-ernance, Sanyo is actively promoting compliance managementthroughout the group. The Sanyo Electric Group Principles ofConduct have been established as a policy that must befollowed by all group executives and employees. It requiresthem to not only observe all relevant laws and internal rules,but also to comply with a wide range of corporate ethics. Aspecific code of conduct has also been established in order tocarry out the Principles of Conduct, and the group executivesand employees have been made well aware of this code.

ManagementIn order to build good relations with stakeholders and increasecorporate value, Sanyo is striving for sound company manage-ment that is more efficient and transparent, along with improvedinternal controls.

■Management System and Internal Control System

Corporate Governance→　www.sanyo.com/corporate/profile/governance.html

access

Corporate Governance

Management


Instruction

Related companies

Chief Supervisor (President)Compliance Officer

Instruction and advice

Corporate Audit OfficeAudit

Establish and manage the system.Plan and release measures.

●Compliance with Antitrust Law

●Compliance with Subcontract Act

●Export control

●Personal information protection

●Health and safety

●Environment conservation

●Product quality, etc.

Key Compliance Areas

Legal H.Q.

Compliance Leaders at Headquarters

Compliance Leaders at Each Internal Company/Headquarters

Report

Risk types

Group-wide risk management Chief Supervisor

Head Office and specialized function organizations

Internal companies and headquarters

- Disasters and accidents- Labor- Political, economic, and social

Instructions & supportInstructions & support

Instructions & support

Report

Report

Report

- Legal- Financial- Management

Group-wide risk management office(General affairs department)

Risk management departmental chief

Risk management office

Risk management manager

Risk management coordinator

■ Compliance Promotion SystemWe have established a compliance promotion system, led by

the Chief Supervisor (President) and the Compliance Officer(selected from among executives). In addition, complianceleaders appointed by head office, each internal company andeach headquarters play a central role in promoting complianceefforts. Compliance leaders ensure adherence to the Code ofConduct and Ethics and prevent violation of laws and regula-tions.

For early detection of and response to compliance-relatedissues, we have installed Compliance Hotlines inside andoutside the Company, as service desks to receive inquiriesfrom and offer consultations to our employees. The contentsof inquiries and consultations from employees are reported toChief Supervisor and Compliance Officer, and, based on theirinstructions, measures such as investigation and assistance forimprovement are forwarded.

■ Risk Management SystemSanyo has designated one executive as Chief Supervisor, and

has set up a group-wide risk management office that supportsthe Chief Supervisor, in order to conduct risk managementthroughout the Group. In fiscal 2007, we established a riskmanagement system on a trial basis, in accordance withJISQ2001 (the Japan Industrial Standards guidelines for build-ing risk management systems).

Specifically, each department is identifying, evaluating,responding to and minimizing risks, according to the SanyoElectric Group Risk Management Policy. The resulting informa-tion is gathered by the group-wide risk management office,and continual improvements are made. Past risk and responsecases, such as large-scale disasters, health and safety acci-dents, and product quality problems, are put into a groupdatabase and shared on a special intranet site. This is done inorder to realize rapid and effective risk response whilepreventing similar disasters or accidents.

■ Compliance Promotion in Key AreasSanyo has designated key compliance areas that require

group-wide commitment. These key areas include compliancewith antitrust law, export control, personal information protec-tion, product quality and health and safety. For each of thesekey areas we have developed internal rules, according towhich management is exercised.

■ Dissemination of Code of Conduct andEthics to All Employees

We have published the Code of Conduct and Ethics for thecountries and regions where Sanyo’s subsidiaries and affiliatedcompanies are located (15 languages), so as to disseminatethe Code to the Sanyo’s executives and employees worldwide.In Japan, the Compliance Guidelines have been distributedinternally in order to explain the Code and presentcompliance-related cases.

In order to deepen understanding of the Code of Conductand Ethics among executives and employees, Sanyo is continu-ing to implement compliance education programs for stratifiedtraining. In fiscal 2007, compliance training was carried out forthe newly appointed Vice Presidents in the new managementsystem taking effect in April 2008, and for the executives ofSanyo’s internal companies and headquarters. In fiscal 2008and beyond, Sanyo will place importance on compliance forthe improvement and strengthening of its internal controlsystem, while further reinforcing compliance on a global man-agement level.

Sanyo regards compliance (the observing of applicable lawsand internal rules and the acting on ethics) as an importantbasis for continuity of business operations. In 2006, we estab-lished the Sanyo Electric Group Code of Conduct and Ethics,to be applied to our executives and employees working atSanyo in Japan and all over the world. The Code of Conductand Ethics provides guidelines for day-to-day work and othercorporate activities from the perspective of compliance.

Regarding risks that may have a significant impact on busi-ness operations, it is necessary to analyze the possibility of riskoccurrence, to quickly detect risk and take necessary measuresto minimize the damage should the risk occur.

In addition to compliance promotion, the Sanyo Group hasplaced importance on risk management for the improvementand strengthening of its internal control system. Integrated riskmanagement is being implemented for the entire groupincluding consolidated subsidiaries.

Compliance Risk Management

■ Compliance promotion system ■ Risk Management System

1. Basic Purposes of Risk ManagementBasic purposes of risk management are to con-tinue business due to reduction of loss in man-agement resources and rapid restoration atoccurrence of an emergency event and toincrease the corporate value, by making appro-priate response to risks which may have a signifi-cant effect on the operation of business.

2. Action Guidelines of Risk Management(1)To try to maintain safety and health of com-

pany members and preserve managementresources

(2)Not to damage safety and health and interestof those who are concerned

(3)To try to make a rapid and appropriate resto-ration in the event where any managementresources are damaged

(4)To take responsible actions complying withlaws and regulations and generally acceptedideas in the event where any risk event occurs

(5)To raise the society’s valuation of the com-pany through continuous risk managementactivities

(6)To reflect social need regarding risk on riskmanagement

SANYO Electric Group Risk Management Policies（Established May 2007）

Management

Management


Instruction

Related companies

Chief Supervisor (President)Compliance Officer

Instruction and advice

Corporate Audit OfficeAudit

Establish and manage the system.Plan and release measures.

●Compliance with Antitrust Law

●Compliance with Subcontract Act

●Export control

●Personal information protection

●Health and safety

●Environment conservation

●Product quality, etc.

Key Compliance Areas

Legal H.Q.

Compliance Leaders at Headquarters

Compliance Leaders at Each Internal Company/Headquarters

Report

Risk types

Group-wide risk management Chief Supervisor

Head Office and specialized function organizations

Internal companies and headquarters

- Disasters and accidents- Labor- Political, economic, and social

Instructions & supportInstructions & support

Instructions & support

Report

Report

Report

- Legal- Financial- Management

Group-wide risk management office(General affairs department)

Risk management departmental chief

Risk management office

Risk management manager

Risk management coordinator

■ Compliance Promotion SystemWe have established a compliance promotion system, led by

the Chief Supervisor (President) and the Compliance Officer(selected from among executives). In addition, complianceleaders appointed by head office, each internal company andeach headquarters play a central role in promoting complianceefforts. Compliance leaders ensure adherence to the Code ofConduct and Ethics and prevent violation of laws and regula-tions.

For early detection of and response to compliance-relatedissues, we have installed Compliance Hotlines inside andoutside the Company, as service desks to receive inquiriesfrom and offer consultations to our employees. The contentsof inquiries and consultations from employees are reported toChief Supervisor and Compliance Officer, and, based on theirinstructions, measures such as investigation and assistance forimprovement are forwarded.

■ Risk Management SystemSanyo has designated one executive as Chief Supervisor, and

has set up a group-wide risk management office that supportsthe Chief Supervisor, in order to conduct risk managementthroughout the Group. In fiscal 2007, we established a riskmanagement system on a trial basis, in accordance withJISQ2001 (the Japan Industrial Standards guidelines for build-ing risk management systems).

Specifically, each department is identifying, evaluating,responding to and minimizing risks, according to the SanyoElectric Group Risk Management Policy. The resulting informa-tion is gathered by the group-wide risk management office,and continual improvements are made. Past risk and responsecases, such as large-scale disasters, health and safety acci-dents, and product quality problems, are put into a groupdatabase and shared on a special intranet site. This is done inorder to realize rapid and effective risk response whilepreventing similar disasters or accidents.

■ Compliance Promotion in Key AreasSanyo has designated key compliance areas that require

group-wide commitment. These key areas include compliancewith antitrust law, export control, personal information protec-tion, product quality and health and safety. For each of thesekey areas we have developed internal rules, according towhich management is exercised.

■ Dissemination of Code of Conduct andEthics to All Employees

We have published the Code of Conduct and Ethics for thecountries and regions where Sanyo’s subsidiaries and affiliatedcompanies are located (15 languages), so as to disseminatethe Code to the Sanyo’s executives and employees worldwide.In Japan, the Compliance Guidelines have been distributedinternally in order to explain the Code and presentcompliance-related cases.

In order to deepen understanding of the Code of Conductand Ethics among executives and employees, Sanyo is continu-ing to implement compliance education programs for stratifiedtraining. In fiscal 2007, compliance training was carried out forthe newly appointed Vice Presidents in the new managementsystem taking effect in April 2008, and for the executives ofSanyo’s internal companies and headquarters. In fiscal 2008and beyond, Sanyo will place importance on compliance forthe improvement and strengthening of its internal controlsystem, while further reinforcing compliance on a global man-agement level.

Sanyo regards compliance (the observing of applicable lawsand internal rules and the acting on ethics) as an importantbasis for continuity of business operations. In 2006, we estab-lished the Sanyo Electric Group Code of Conduct and Ethics,to be applied to our executives and employees working atSanyo in Japan and all over the world. The Code of Conductand Ethics provides guidelines for day-to-day work and othercorporate activities from the perspective of compliance.

Regarding risks that may have a significant impact on busi-ness operations, it is necessary to analyze the possibility of riskoccurrence, to quickly detect risk and take necessary measuresto minimize the damage should the risk occur.

In addition to compliance promotion, the Sanyo Group hasplaced importance on risk management for the improvementand strengthening of its internal control system. Integrated riskmanagement is being implemented for the entire groupincluding consolidated subsidiaries.

Compliance Risk Management

■ Compliance promotion system ■ Risk Management System

1. Basic Purposes of Risk ManagementBasic purposes of risk management are to con-tinue business due to reduction of loss in man-agement resources and rapid restoration atoccurrence of an emergency event and toincrease the corporate value, by making appro-priate response to risks which may have a signifi-cant effect on the operation of business.

2. Action Guidelines of Risk Management(1)To try to maintain safety and health of com-

pany members and preserve managementresources

(2)Not to damage safety and health and interestof those who are concerned

(3)To try to make a rapid and appropriate resto-ration in the event where any managementresources are damaged

(4)To take responsible actions complying withlaws and regulations and generally acceptedideas in the event where any risk event occurs

(5)To raise the society’s valuation of the com-pany through continuous risk managementactivities

(6)To reflect social need regarding risk on riskmanagement

SANYO Electric Group Risk Management Policies（Established May 2007）

Management



Seiichiro Sano, PresidentSANYO Electric Co., Ltd.April 2, 2007

Basic PolicyBased on the corporate vision, “Think GAIA,” and as a “leading provider of Environment- and Energy-relatedproducts,” the SANYO Electric Group is aiming to protect the global environment while also realizing a prosper-ous and secure society. In order to achieve this goal, SANYO is taking a leadership role in the global environ-mental field.

Action PlanTo put into practice the basic policy, the SANYO Group as a whole is committed to undertaking the followingmeasures on a global level.

1. Reforming awareness and behaviorWith all employees changing their thinking and actions and carrying out environmental protection activitiesindependently, the SANYO Group also intends to actively enhance its environmental contribution through itsproducts. In order to achieve this, SANYO will not only carry out environmental education and awareness-raising activities, it will also strengthen investment in management resources for the commercialization ofproducts that help protect the environment.

2. ComplianceIn addition to identifying environmental issues, the SANYO Group will establish and observe regulations andstandards that reflect both the law and the expectations of society.

3. Development of businesses that contribute to the environmentBy developing revolutionary technologies that help resolve environmental issues, the SANYO Group will activelydevelop business areas that promote products beneficial to the environment, and thereby increase its corpo-rate value.

4. “Zero emissions” challengeThe SANYO Group is rising to the challenge of attaining zero emissions through reforms based on the man-agement of harmful chemical substances, the reduction of energy and materials use, and the streamlining ofoperations through individual employee efforts. As a result of this, SANYO will help to minimize the effectsof global warming, save decreasing resources, reduce waste, and prevent pollution. Moreover, activitiesunder the SANYO environmental management system must continually be improved, through the activesetting and periodic reviewing of targets from a practical, long-term perspective.

5. Working with society to improve the global environmentBy actively disclosing information and participating in the improvement of the natural environment, theSANYO Group intends to build good relationships with societies around the world, and actively contributeto the conservation of the global environment.

Scope:The activities mentioned above are to be systematically promoted at all product stages including R&D, design,materials procurement, manufacturing, distribution and sales, consumer use, disposal, and recycling. They applyto all business areas including the provision of products and services relating to AV and communication devices,electrical equipment, industrial equipment, electronic devices, and batteries.

SANYO Electric Group Environmental PoliciesBecoming a “Leading Provider of Environment- and Energy-related Products”

Initiatives for CO2 Emission Reduction by 2020

Achieving "Carbon Neutral" Statusin 2010 at 1.6 million tons

Achieve “Carbon Minus” StatusCO2 emission reduction by use of environmentally-conscious products surpasses CO2 output from business activities

0 2010 2020

CO2 emission reductionthrough use of products

CO2 output frombusiness activities

Sanyo's definition of the following terms:* Carbon neutral status: CO2 output from Sanyo's business activities

and CO2 reduction through use of Sanyo products are equal.* Carbon minus status: CO2 reduction through use of Sanyo products

surpasses CO2 output from Sanyo's business activities.* "CO2 emissions reduction through use of Sanyo products" is

calculated based on Sanyo's criteria.

CO2 amount(10,000 tons)

In pursuing businesses as a "leading provider of Environment-and Energy-related products,"the Sanyo Group's future visionis to be a contributor in resolving the global environmental/energy problems with its superior technological capabilities.From this perspective, Sanyo is promoting the development oftechnologies and products. In particular, considering the emis-sion control of the CO2 responsible for global warming as atop-priority issue, the Sanyo Group has formulated the "GlobalEnvironmental Action Plan. "Among the goals set is tobecome "Carbon Neutral"*1 in 2010 whereby the CO2 emissionreduction through use of group-wide environmentally-conscious products, including solar cells and rechargeablebatteries, equals the CO2 output from business activitiesworldwide (approximately 1.6 million tons) . Further, Sanyo'sultimate aim is that by 2020 CO2 emission reduction throughproduct use significantly surpasses CO2 output from businessactivities. Thus, Sanyo is aiming to become a company thatcan contribute to realizing a "Carbon Minus"*1 society. To thisend, Sanyo will actively promote dissemination of solar cells,HEV rechargeable batteries, and "eneloop" consumer nickel-metal hydride batteries, through which an annual CO2 emissionreduction of approximately 20 million tons can be expected by2020.

At the same time, to control emission of CO2 and othergreenhouse gases from business activities, Sanyo will act in linewith the target set by the electric/electronic industry of Japan,which is "by fiscal 2010 reducing CO2 emissions per basic unitof production output by 35% from the fiscal 1990 level." Inaddition, based on its own goals set for reduction of CO2

emissions per unit of production output respectively forGEMS*2, domestic manufacturing facilities, and worldwide,Sanyo will strive to further improve energy efficiency.

The environmental management system is the foundation for abusiness enterprise to steadily fulfill their environmental responsi-bility. The Sanyo Group is constantly expanding construction of itsISO14001-based environmental management system in Japan andoverseas. From now on, Sanyo will also promote system construc-tion in those overseas non-manufacturing companies in which theEMS has not been constructed yet. Thus, Sanyo will steadilyimprove its management system on a global basis.

Further, to promote environmental management group-wide, itis vital that employees have sufficient knowledge and awarenessof environmental affairs. In this regard, the Sanyo Group willprovide unified environmental education programs for employeesworldwide.

With the view that observing environment-related laws anddoing risk management are important matters for environmen-tal management, Sanyo will work to minimize social/economicallosses and risks associated with them. In particular, Sanyo willgive priority to promoting "global-based intensive manage-ment of soil contamination statuses" and "global-based inten-sive management of chemical substances in products."For soil contamination countermeasures, a land history survey

will be conducted on all the lands the Sanyo Group is con-cerned with, including those overseas. Based on the order ofpriority that will be determined, Sanyo will systematically carryout surveys to check for soil contamination and investigate soilconditions.

Further, for management of chemical substances in productsaccording to RoHS and other regulations, against a backdropof tighter environment laws in countries all over the world anddiversifying procurement/supply forms, such as overseasmanufacturing and overseas distribution, Sanyo will ensurecompliance with the Sanyo Group's standards and intensifymanagement of its subsidiaries in this regard.

Environmental Mid-term StrategyAiming to build foundation as a "leading provider of Environment-and Energy-related products" through realizing the Mid-term Man-agement Plan from an environmental perspective

*1 "Carbon Neutral" and "Carbon Minus" are terms selected for use by Sanyo. "CO2

emission reduction through product use" is calculated based on Sanyo's criteria.*2 GEMS stands for "Group Environmental Management System," in which the main

business facilities of the Sanyo Group in Japan have been integrated to promoteenvironmental management, resulting in acquisition of ISO14001 certification as agroup.

Business Activities to Help SolveEnvironmental/Energy Problems

Promoting Global-based Environmental Management

Promoting Thorough Environmental Compliance

● Sanyo Global Environmental Action Plan settled and Global Environmental Management undertaken– Achieve Carbon Neutral Status*1 in 2010 –

● Share of total product sales conforming to Sanyo's environmentally conscious standardreached 62.4%

Highlights



Seiichiro Sano, PresidentSANYO Electric Co., Ltd.April 2, 2007

Basic PolicyBased on the corporate vision, “Think GAIA,” and as a “leading provider of Environment- and Energy-relatedproducts,” the SANYO Electric Group is aiming to protect the global environment while also realizing a prosper-ous and secure society. In order to achieve this goal, SANYO is taking a leadership role in the global environ-mental field.

Action PlanTo put into practice the basic policy, the SANYO Group as a whole is committed to undertaking the followingmeasures on a global level.

1. Reforming awareness and behaviorWith all employees changing their thinking and actions and carrying out environmental protection activitiesindependently, the SANYO Group also intends to actively enhance its environmental contribution through itsproducts. In order to achieve this, SANYO will not only carry out environmental education and awareness-raising activities, it will also strengthen investment in management resources for the commercialization ofproducts that help protect the environment.

2. ComplianceIn addition to identifying environmental issues, the SANYO Group will establish and observe regulations andstandards that reflect both the law and the expectations of society.

3. Development of businesses that contribute to the environmentBy developing revolutionary technologies that help resolve environmental issues, the SANYO Group will activelydevelop business areas that promote products beneficial to the environment, and thereby increase its corpo-rate value.

4. “Zero emissions” challengeThe SANYO Group is rising to the challenge of attaining zero emissions through reforms based on the man-agement of harmful chemical substances, the reduction of energy and materials use, and the streamlining ofoperations through individual employee efforts. As a result of this, SANYO will help to minimize the effectsof global warming, save decreasing resources, reduce waste, and prevent pollution. Moreover, activitiesunder the SANYO environmental management system must continually be improved, through the activesetting and periodic reviewing of targets from a practical, long-term perspective.

5. Working with society to improve the global environmentBy actively disclosing information and participating in the improvement of the natural environment, theSANYO Group intends to build good relationships with societies around the world, and actively contributeto the conservation of the global environment.

Scope:The activities mentioned above are to be systematically promoted at all product stages including R&D, design,materials procurement, manufacturing, distribution and sales, consumer use, disposal, and recycling. They applyto all business areas including the provision of products and services relating to AV and communication devices,electrical equipment, industrial equipment, electronic devices, and batteries.

SANYO Electric Group Environmental PoliciesBecoming a “Leading Provider of Environment- and Energy-related Products”

Initiatives for CO2 Emission Reduction by 2020

Achieving "Carbon Neutral" Statusin 2010 at 1.6 million tons

Achieve “Carbon Minus” StatusCO2 emission reduction by use of environmentally-conscious products surpasses CO2 output from business activities

0 2010 2020

CO2 emission reductionthrough use of products

CO2 output frombusiness activities

Sanyo's definition of the following terms:* Carbon neutral status: CO2 output from Sanyo's business activities

and CO2 reduction through use of Sanyo products are equal.* Carbon minus status: CO2 reduction through use of Sanyo products

surpasses CO2 output from Sanyo's business activities.* "CO2 emissions reduction through use of Sanyo products" is

calculated based on Sanyo's criteria.

CO2 amount(10,000 tons)

In pursuing businesses as a "leading provider of Environment-and Energy-related products,"the Sanyo Group's future visionis to be a contributor in resolving the global environmental/energy problems with its superior technological capabilities.From this perspective, Sanyo is promoting the development oftechnologies and products. In particular, considering the emis-sion control of the CO2 responsible for global warming as atop-priority issue, the Sanyo Group has formulated the "GlobalEnvironmental Action Plan. "Among the goals set is tobecome "Carbon Neutral"*1 in 2010 whereby the CO2 emissionreduction through use of group-wide environmentally-conscious products, including solar cells and rechargeablebatteries, equals the CO2 output from business activitiesworldwide (approximately 1.6 million tons) . Further, Sanyo'sultimate aim is that by 2020 CO2 emission reduction throughproduct use significantly surpasses CO2 output from businessactivities. Thus, Sanyo is aiming to become a company thatcan contribute to realizing a "Carbon Minus"*1 society. To thisend, Sanyo will actively promote dissemination of solar cells,HEV rechargeable batteries, and "eneloop" consumer nickel-metal hydride batteries, through which an annual CO2 emissionreduction of approximately 20 million tons can be expected by2020.

At the same time, to control emission of CO2 and othergreenhouse gases from business activities, Sanyo will act in linewith the target set by the electric/electronic industry of Japan,which is "by fiscal 2010 reducing CO2 emissions per basic unitof production output by 35% from the fiscal 1990 level." Inaddition, based on its own goals set for reduction of CO2

emissions per unit of production output respectively forGEMS*2, domestic manufacturing facilities, and worldwide,Sanyo will strive to further improve energy efficiency.

The environmental management system is the foundation for abusiness enterprise to steadily fulfill their environmental responsi-bility. The Sanyo Group is constantly expanding construction of itsISO14001-based environmental management system in Japan andoverseas. From now on, Sanyo will also promote system construc-tion in those overseas non-manufacturing companies in which theEMS has not been constructed yet. Thus, Sanyo will steadilyimprove its management system on a global basis.

Further, to promote environmental management group-wide, itis vital that employees have sufficient knowledge and awarenessof environmental affairs. In this regard, the Sanyo Group willprovide unified environmental education programs for employeesworldwide.

With the view that observing environment-related laws anddoing risk management are important matters for environmen-tal management, Sanyo will work to minimize social/economicallosses and risks associated with them. In particular, Sanyo willgive priority to promoting "global-based intensive manage-ment of soil contamination statuses" and "global-based inten-sive management of chemical substances in products."For soil contamination countermeasures, a land history survey

will be conducted on all the lands the Sanyo Group is con-cerned with, including those overseas. Based on the order ofpriority that will be determined, Sanyo will systematically carryout surveys to check for soil contamination and investigate soilconditions.

Further, for management of chemical substances in productsaccording to RoHS and other regulations, against a backdropof tighter environment laws in countries all over the world anddiversifying procurement/supply forms, such as overseasmanufacturing and overseas distribution, Sanyo will ensurecompliance with the Sanyo Group's standards and intensifymanagement of its subsidiaries in this regard.

Environmental Mid-term StrategyAiming to build foundation as a "leading provider of Environment-and Energy-related products" through realizing the Mid-term Man-agement Plan from an environmental perspective

*1 "Carbon Neutral" and "Carbon Minus" are terms selected for use by Sanyo. "CO2

emission reduction through product use" is calculated based on Sanyo's criteria.*2 GEMS stands for "Group Environmental Management System," in which the main

business facilities of the Sanyo Group in Japan have been integrated to promoteenvironmental management, resulting in acquisition of ISO14001 certification as agroup.

Business Activities to Help SolveEnvironmental/Energy Problems

Promoting Global-based Environmental Management

Promoting Thorough Environmental Compliance

● Sanyo Global Environmental Action Plan settled and Global Environmental Management undertaken– Achieve Carbon Neutral Status*1 in 2010 –

● Share of total product sales conforming to Sanyo's environmentally conscious standardreached 62.4%

Highlights



>> >> >> >>

Overview of the Environmental Impact of the Sanyo Group (In Japan)

The Sanyo Group is fully committed to collecting precise dataabout the impact its business activities have on the environmentover the entire life cycles of its products and services, and reduc-ing that impact.

Greenhouse gasesFuel for transport on contract(1,000 t-CO2)

Fuel for sales/service vehicles(1,000 t-CO2)

40

6.9

Weight of units recycledTelevision (t)Refrigerator/Freezer (t)Washing machine (t)Air conditioner (t)

7,84615,68510,3206,536

Recovered materialsIron (t)Copper (t)Aluminum (t)Mixture of nonferrous andferrous metals (t)CRT (cathode-ray tube) glass (t)Other (t)

16,3321,2591,1987,553

4,4309,607

Greenhouse gases (by use of products)CO2*1 (1,000 t-CO2)CO2 emission reduction*1,*2

(1,000 t-CO2)(from solar power generation)

289112

EnergyTotal energy input (100 million MJ)Electricity: Purchased (million kWh)Solar-generated (million kWh)Natural gas (million Nm3)LPG (1,000 t)LNG (1,000 t)Heavy oil / Kerosene / Diesel oil / Volatile oil (1,000 kL)

1449561.182

12.89.47.4

WaterTotal input (million m3) 17

EnergyEstimated annual power consumption of major items

705 (million kWh/year)

Weight of units recycled or otherwise treatedTelevision (t)Refrigerator/Freezer (t)Washing machine (t)Air conditioner (t)

9,00120,89612,2247,278

EnergyFuel for transport on contract (1,000 kL)Fuel for sales/service vehicles (1,000 kL)

153.0

Raw material / subsidiary materialIron (t)Aluminum (t)Copper (t)Nonferrous metals (t)Plastic (t)Rubber (t)Glass (t)Chemical substances (t)Including substances subject to PRTR

Gases (t)Other (t)

46,7546,0656,336

16,82310,175

511,791

43,244

98,30211,872

* Parts input is not included.

Greenhouse gasesTotal emission (1,000 t-CO2)CO2*1 (1,000 t-CO2)Greenhouse gases other than CO2 (1,000 t-CO2)

75066288

Atmospheric environmental impactNOX（t）SOX（t）Dust (t)

222150

WaterTotal water discharge (million m3)BOD(t)COD(t)

1510893

WastesTotal amount of waste generation(Including valuables) (1,000 t)

General waste (1,000 t)Industrial waste (1,000 t)Recycled waste (1,000 t)Final disposal waste (1,000 t)Final disposal rate (%)

90

68471

0.160.18

Chemical substances subject to PRTRReleased amount (t)Transferred amount (t)

42208

* Product shipment is not included.

INPUTINPUT

OUTPUT

INPUT

OUTPUT

INPUT

OUTPUT

INPUT

OUTPUT

Global Environmental Performance Data→ www.sanyo.com/environment/en/env/performance/access

* Estimated from the cost of transport under-taken by SANYO Electric Logistics Co., Ltd.

GHP, PAC air-conditioner, refrigerator/freezer, air conditioner, air humidifier,washing machine, electric carpet, FAX

Reutilization

MaterialsProcurement R&D Production Logistics

and Sales Use Recovery /Reuse

Scope of Survey: SANYO Electric Co., Ltd., domestic manufacturing subsidiaries, and major non-manufacturing related companies*1 The emission factor specified by the Federation of Electric Power Companies of Japan is used as the CO2 emission factor for purchased electricity. However, since

the figure for fiscal 2007 has not been announced yet, the emission factor for fiscal 2006, which was 0.410kg-CO2/kWh, is used on a temporary basis.*2 Solar cells are capable of continuously generating power for approximately 20 years after they are sold. For this reason, CO2 emission reduction from solar power

generation is indicated by the accumulated value since fiscal 2003 when sales expanded in full swing.



>> >> >> >>

Overview of the Environmental Impact of the Sanyo Group (In Japan)

The Sanyo Group is fully committed to collecting precise dataabout the impact its business activities have on the environmentover the entire life cycles of its products and services, and reduc-ing that impact.

Greenhouse gasesFuel for transport on contract(1,000 t-CO2)

Fuel for sales/service vehicles(1,000 t-CO2)

40

6.9

Weight of units recycledTelevision (t)Refrigerator/Freezer (t)Washing machine (t)Air conditioner (t)

7,84615,68510,3206,536

Recovered materialsIron (t)Copper (t)Aluminum (t)Mixture of nonferrous andferrous metals (t)CRT (cathode-ray tube) glass (t)Other (t)

16,3321,2591,1987,553

4,4309,607

Greenhouse gases (by use of products)CO2*1 (1,000 t-CO2)CO2 emission reduction*1,*2

(1,000 t-CO2)(from solar power generation)

289112

EnergyTotal energy input (100 million MJ)Electricity: Purchased (million kWh)Solar-generated (million kWh)Natural gas (million Nm3)LPG (1,000 t)LNG (1,000 t)Heavy oil / Kerosene / Diesel oil / Volatile oil (1,000 kL)

1449561.182

12.89.47.4

WaterTotal input (million m3) 17

EnergyEstimated annual power consumption of major items

705 (million kWh/year)

Weight of units recycled or otherwise treatedTelevision (t)Refrigerator/Freezer (t)Washing machine (t)Air conditioner (t)

9,00120,89612,2247,278

EnergyFuel for transport on contract (1,000 kL)Fuel for sales/service vehicles (1,000 kL)

153.0

Raw material / subsidiary materialIron (t)Aluminum (t)Copper (t)Nonferrous metals (t)Plastic (t)Rubber (t)Glass (t)Chemical substances (t)Including substances subject to PRTR

Gases (t)Other (t)

46,7546,0656,336

16,82310,175

511,791

43,244

98,30211,872

* Parts input is not included.

Greenhouse gasesTotal emission (1,000 t-CO2)CO2*1 (1,000 t-CO2)Greenhouse gases other than CO2 (1,000 t-CO2)

75066288

Atmospheric environmental impactNOX（t）SOX（t）Dust (t)

222150

WaterTotal water discharge (million m3)BOD(t)COD(t)

1510893

WastesTotal amount of waste generation(Including valuables) (1,000 t)

General waste (1,000 t)Industrial waste (1,000 t)Recycled waste (1,000 t)Final disposal waste (1,000 t)Final disposal rate (%)

90

68471

0.160.18

Chemical substances subject to PRTRReleased amount (t)Transferred amount (t)

42208

* Product shipment is not included.

INPUTINPUT

OUTPUT

INPUT

OUTPUT

INPUT

OUTPUT

INPUT

OUTPUT

Global Environmental Performance Data→ www.sanyo.com/environment/en/env/performance/access

* Estimated from the cost of transport under-taken by SANYO Electric Logistics Co., Ltd.

GHP, PAC air-conditioner, refrigerator/freezer, air conditioner, air humidifier,washing machine, electric carpet, FAX

Reutilization

MaterialsProcurement R&D Production Logistics

and Sales Use Recovery /Reuse

Scope of Survey: SANYO Electric Co., Ltd., domestic manufacturing subsidiaries, and major non-manufacturing related companies*1 The emission factor specified by the Federation of Electric Power Companies of Japan is used as the CO2 emission factor for purchased electricity. However, since

the figure for fiscal 2007 has not been announced yet, the emission factor for fiscal 2006, which was 0.410kg-CO2/kWh, is used on a temporary basis.*2 Solar cells are capable of continuously generating power for approximately 20 years after they are sold. For this reason, CO2 emission reduction from solar power

generation is indicated by the accumulated value since fiscal 2003 when sales expanded in full swing.



Environmental Action PlanSanyo Global Environmental Action Plan was launched inApril 2008 and has been promoted Group-wide.

Scope:I. Group-wide Major Objectives: All business facilities in Japan and overseasII. GEMS Objectives: Integrated ISO14001-certified organizational body with SANYO Electric Co., Ltd. being the main entity.

Ⅰ. Group-wide Major Objectives

ⅡGEMS Objectives

Indicators for assessing progress ActionCarbon Neutral*1 achievement level

Reduction rate of CO2 emissions per unit ofproduction output in domestic manufacturingactivities (as compared to the FY 2006 level)

Make efforts to realize a status in which CO2 reduction through use ofproducts is equal to CO2 output from business activities

In line with the target set by the electric/electronic industry (reduction of CO2 emissionsper basic unit of production output by 35% from the FY 1990 level), improve manufac-turing process efficiency and promote energy-creation and energy-saving.In all business activities in Japan and overseas, improve energy-useefficiency and promote energy-creation and energy-saving.

To reduce CO2 emissions attributable to products, develop and expandsales of energy-saving/energy-creation products.

To reduce risks associated with global-level soil contamination, collectland information, conduct on-site surveys, and examine the necessity ofpurification.For each month's production, do management so that full (100%) assur-ance is implemented for specified chemical substances in products.

To ensure compliance and intensify risk management, construct anenvironmental management system for all business facilities in Japanand overseas.

Reduction rate of CO2 emissions per unit ofproduction output in global business activities (ascompared to the FY 2006 level)

Construction level of global environmentalmanagement system

Achievement level of internal company-basedgoals for reduction of environmental impact inproducts/parts

○

○

○

◎

◎

―

○

◎

○

○

○

○

◎

―

Thoroughness of management of chemicalsubstances in products

Indicators for assessing progressPercentage of products that have achievedthe product assessment standard

Objectives

Ensuring environmental quality ofproducts

Expansion of environmentally-conscious quality products

Promotion of environmental tech-nology development

Reduction of greenhouse gas emis-sions in business activities

Promotion of reuse and recycling ofused products and parts

Reduction of waste in businessactivities

Reduction of chemical substanceemissions in business activities

Promotion of management of chemicalsubstances contained in products

Reduction of specified chemicalsubstances contained in products

Intensification of management ofchemical substances in products

Percentage of advanced environmental prod-ucts

Percentage of top-level environmental prod-ucts

Implementation of energy-saving measures

Recycling of collected recyclable materials(plastic)

Final waste disposal rate(GEMS average)

Percentage of business bases that achieved afinal waste disposal rate of less than 0.5%

Reduction rate of emission of substancessubject to PRTR (compared to FY 1999)

Progress ratio of green procurement survey(with respect to new models released duringthe year concerned)Percentage of green components used (withrespect to new models released during theyear concerned)Management level of chemical substances inproducts

No. of transferable environment-relatedtechnologies developed (cumulative totalsince FY 2000)Reduction rate of CO2 emissions per unit ofsales (compared to FY 1999)

Reduction rate of CO2 emissions per unit ofproduction output (compared to FY 2006)

Target for FY 2007

100%

60% or more

8% or more

Up 17%(compared to FY 2006 in terms of

number of parts)

0.45% or less*3

80% or more

88% or more

70% or more

60% or more

―

3% or more

―

Energy-saving effect correspond-ing to 4.0% of energy

consumption for FY 2004

FY 2007 achievement Self evaluation*2

P33

P35

P35

─

P37

P37

P37

P34

P39

P39

P40

P32

P31

P31

Reference

100%

62.4%

8.8%


number of parts)

0.36%

95%

92%

77%

75.7%

―

13%

5350 or more

―

4.7%

FY 2008

―

70% or more

10% or more

300 tons(Amount recycled and used)

0.3% or less

Less than 0.5% for business locations otherthan those engaged in sales/services

85% or more

100%

56 or more

4% or more

Energy-saving effect correspondingto 3.5% of CO2 emissions for FY 2006

FY 2009

―

80% or more

15% or more


0.3% or less

Less than 0.5% for all businesslocations

87% or more

Indicator changed to "Management level of chemical substances in products" in"Intensification of management of chemical substances in products"

100%

Indicator changed to"Reduction rate of CO2 emissions per unit of production output(compared to FY 2006)"

59 or more

6% or more

Energy-saving effect corresponding to4.5% of CO2 emissions for FY 2006

FY 2010

―

100%

30% or more

1,000 tons(Amount recycled and used)

0.3% or less


89% or more

100%

62 or more

8% or more


Target for FY 2008

30%

2%(29%: compared to FY 1990)

3%

50%

100%

Global land history surveycompletion rate: 100%

100%

Target for FY 2009

65%


4%

75%

100%

Scheduled soil contaminationsurvey completion rate: 100%

100%

Target for FY 2010

100%


5%

100%

100%


100%

Objectives

Realization of Carbon Neutral*1

Construction of global environmen-tal management system

Intensification of soil contaminationcontrol


Thoroughness of soil contamination control

*1 “Carbon neutral” is a term defined by Sanyo.*2◎: Target achieved at least one year ahead of schedule.○: Target achieved as scheduled.×: Target not achieved as scheduled.*3 Target was revised during the period due to a final disposal rate significantly over the envisioned scope resulting from temporary generation of waste not envisioned

in the target setting (returned goods).

Sanyo Global Environmental Action Plan



Environmental Action PlanSanyo Global Environmental Action Plan was launched inApril 2008 and has been promoted Group-wide.

Scope:I. Group-wide Major Objectives: All business facilities in Japan and overseasII. GEMS Objectives: Integrated ISO14001-certified organizational body with SANYO Electric Co., Ltd. being the main entity.

Ⅰ. Group-wide Major Objectives

ⅡGEMS Objectives

Indicators for assessing progress ActionCarbon Neutral*1 achievement level

Reduction rate of CO2 emissions per unit ofproduction output in domestic manufacturingactivities (as compared to the FY 2006 level)

Make efforts to realize a status in which CO2 reduction through use ofproducts is equal to CO2 output from business activities

In line with the target set by the electric/electronic industry (reduction of CO2 emissionsper basic unit of production output by 35% from the FY 1990 level), improve manufac-turing process efficiency and promote energy-creation and energy-saving.In all business activities in Japan and overseas, improve energy-useefficiency and promote energy-creation and energy-saving.

To reduce CO2 emissions attributable to products, develop and expandsales of energy-saving/energy-creation products.

To reduce risks associated with global-level soil contamination, collectland information, conduct on-site surveys, and examine the necessity ofpurification.For each month's production, do management so that full (100%) assur-ance is implemented for specified chemical substances in products.

To ensure compliance and intensify risk management, construct anenvironmental management system for all business facilities in Japanand overseas.

Reduction rate of CO2 emissions per unit ofproduction output in global business activities (ascompared to the FY 2006 level)

Construction level of global environmentalmanagement system

Achievement level of internal company-basedgoals for reduction of environmental impact inproducts/parts

○

○

○

◎

◎

―

○

◎

○

○

○

○

◎

―

Thoroughness of management of chemicalsubstances in products

Indicators for assessing progressPercentage of products that have achievedthe product assessment standard

Objectives

Ensuring environmental quality ofproducts

Expansion of environmentally-conscious quality products

Promotion of environmental tech-nology development

Reduction of greenhouse gas emis-sions in business activities

Promotion of reuse and recycling ofused products and parts

Reduction of waste in businessactivities

Reduction of chemical substanceemissions in business activities

Promotion of management of chemicalsubstances contained in products

Reduction of specified chemicalsubstances contained in products


Percentage of advanced environmental prod-ucts

Percentage of top-level environmental prod-ucts

Implementation of energy-saving measures

Recycling of collected recyclable materials(plastic)

Final waste disposal rate(GEMS average)

Percentage of business bases that achieved afinal waste disposal rate of less than 0.5%

Reduction rate of emission of substancessubject to PRTR (compared to FY 1999)

Progress ratio of green procurement survey(with respect to new models released duringthe year concerned)Percentage of green components used (withrespect to new models released during theyear concerned)Management level of chemical substances inproducts

No. of transferable environment-relatedtechnologies developed (cumulative totalsince FY 2000)Reduction rate of CO2 emissions per unit ofsales (compared to FY 1999)

Reduction rate of CO2 emissions per unit ofproduction output (compared to FY 2006)

Target for FY 2007

100%

60% or more

8% or more


number of parts)

0.45% or less*3

80% or more

88% or more

70% or more

60% or more

―

3% or more

―

Energy-saving effect correspond-ing to 4.0% of energy

consumption for FY 2004

FY 2007 achievement Self evaluation*2

P33

P35

P35

─

P37

P37

P37

P34

P39

P39

P40

P32

P31

P31

Reference

100%

62.4%

8.8%


number of parts)

0.36%

95%

92%

77%

75.7%

―

13%

5350 or more

―

4.7%

FY 2008

―

70% or more

10% or more


0.3% or less

Less than 0.5% for business locations otherthan those engaged in sales/services

85% or more

100%

56 or more

4% or more

Energy-saving effect correspondingto 3.5% of CO2 emissions for FY 2006

FY 2009

―

80% or more

15% or more


0.3% or less


87% or more

Indicator changed to "Management level of chemical substances in products" in"Intensification of management of chemical substances in products"

100%

Indicator changed to"Reduction rate of CO2 emissions per unit of production output(compared to FY 2006)"

59 or more

6% or more


FY 2010

―

100%

30% or more

1,000 tons(Amount recycled and used)

0.3% or less


89% or more

100%

62 or more

8% or more


Target for FY 2008

30%


3%

50%

100%

Global land history surveycompletion rate: 100%

100%

Target for FY 2009

65%


4%

75%

100%


100%

Target for FY 2010

100%


5%

100%

100%


100%

Objectives

Realization of Carbon Neutral*1

Construction of global environmen-tal management system

Intensification of soil contaminationcontrol


Thoroughness of soil contamination control

*1 “Carbon neutral” is a term defined by Sanyo.*2◎: Target achieved at least one year ahead of schedule.○: Target achieved as scheduled.×: Target not achieved as scheduled.*3 Target was revised during the period due to a final disposal rate significantly over the envisioned scope resulting from temporary generation of waste not envisioned

in the target setting (returned goods).

Sanyo Global Environmental Action Plan



TOPICS Drum-type Washer/Dryer Improved

[Green Procurement System Chart]

Level of environmental management system

Progress in green procurement

Information disclosure

Management system for chemicalsubstances in products

Product assessment

Environmentally-hazardous chemicalsubstances contained in products

Chemical substances used inmanufacturing process

Material andPurchase division

Product Planning andDesign division

Green Procurement

Supplier Survey

Product Survey

Design

Procurement

Production

Shipment

Row materialmanufacturers

Componentmanufacturers

Process

Information

Suppliers / OEMpartners

Data/Information

Evaluation of themanagement system

Environmentalmanagement incomponents and

materials

Consent to non-useCertificate of non-use

Measurement data

Confirmation

Confirmationand

measurement

Delivery specifications

Component database

Reduction of Environmental Impact in ProductsWe strive to develop and disseminate "environmentally-conscious products" to reduce theenvironmental impact via reduction of energy consumption, reduction of usage of chemicalsubstances with environmental impact, efficient usage of recycled materials, outstandingproduct durability, and constructing products in a way that facilitates recyclability.

■ Green Procurement PromotionThe Sanyo Group has been striving to reduce use of

environmentally-hazardous chemical substances through expand-ing green procurement both in Japan and overseas by purchas-ing articles that meet Sanyo's own environmental standards fromsuppliers that actively practice environmental protection.

The building of partnerships with suppliers is essential for thepromotion of green procurement. Every year from October toDecember, Sanyo investigates the situation at suppliers includingthe building of environmental management systems andrequests improvement as necessary. In addition, in 2006 Sanyostarted management system evaluations according to the Guide-lines for the Management of Chemical Substances in Productsnewly established by the Japan Green Procurement Survey Stan-dardization Initiative (JGPSSI). To facilitate management, Sanyoheld briefings for suppliers on the purpose of investigation,evaluation methods, and online questionnaire system.

Today, cooperation with suppliers regarding chemicalsubstances in products, in terms of data sharing and manage-ment system operation, is increasingly important due to thenecessity of observing REACH*2 in Europe etc. To this end,Sanyo is working to strengthen its management systemthroughout its supply chains.

■ Reducing Material Weight and VolumeIn environmentally-conscious design creation, one of the

impor tant themes is reduct ion of mater ia ls used,product/packaging volume, and product weight. Sanyoaddresses this as one of its product assessment evaluationitems (P33).

For example, Sanyo developed a gas heat pump air condi-

■ Designing Products that can be Easily RecycledTo facilitate proper treatment of used equipment, the Sanyo

Group strives to design products that can be easily recycled. Inaddition to holding "Recycling School" on a regular basis toprovide engineers with on-site study experience at a recyclingplant, in April 2007 the "Guidelines for Designing Easily-Recyclable Products" was issued, in which important points indesigning products are organized by following the equipmentdisassembly process. Practically, for drum-type washing/dryingmachines, which tend to be more difficult to recycle comparedto standard automatic washing machines due to their compli-cated structure with many parts, structural review was con-ducted to increase ease of disassembly.

■ Improving Energy EfficiencyThe Sanyo Group considers the strengthening of its efforts to

combat global warming to be the highest priority issue. Inaddressing the reduction of environmental impact in products,Sanyo focuses on development and dissemination of productsand parts that can contribute to reduction of CO2 emissionsfrom product use. In this way, Sanyo will help realize a low-carbon society.

The Sanyo Group has proprietary high-energy efficiency tech-nologies and solutions, which are utilized in various products,including HIT solar cell, "eneloop" – nickel-metal hydridebattery, "Eco Cute" – heat pump water heater, "enegreen" –supermarket showcase refrigerating system, and HEVrechargeable battery.HIT solar cell is capable of a high energy conversion efficiency

of 22.3% (cell) thanks to its high- quality juncture of single-crystalline silicon substrate and amorphous silicon layer andimproved solar cell surface shape.

"eneloop" has extremely low self-discharge characteristics,enabling minimum waste of charged energy."Eco Cute," using a natural refrigerant CO2 compressor, con-

tributes to energy efficiency improvement through high-efficiency heat pump technology and utilization of midnightpower. The government is also promoting dissemination ofheat pumps as part of its measures for CO2 emissions reduc-tion.

"enegreen" employs a W-Multi System that connects mul-tiple showcases and multiple refrigerating machines. Refriger-ating machines are equipped with a DC inverter compressor toeliminate wasteful operation caused by slipping peculiar toconventional AC motors, enabling higher energy efficiency. Inaddition, by interconnecting refrigerating machines an opti-mum store system can be provided. Further, even higherenergy efficiency is possible if this system is combined withSanyo's "Consolidated Energy Saving System for Stores" tounify management and control of store equipment such as airconditioners and lighting.

With the prospect of global warming and resource depletionHEV rechargeable batteries are expected to rapidly expand inthe future. Sanyo will accelerate development and commercial-ization of increasingly high-performance HEV batteries, toevolve current nickel-metal hydride batteries to next-generation nickel-metal hydride batteries and next-generationLithium-ion batteries.

■Managing Chemical Substances in ProductsAmid mounting concern over specified chemical substances in

products, the Sanyo Group made it a priority to conduct asurvey on chemical substances with a high environmentalimpact, including the six substances specified by EU RoHSDirective*1 and has been replacing these with safer substances.Consequently, Sanyo completed the removal of all six specifiedchemical substances from products produced in Japan andthose for the EU market at the manufacturing stage by the endof December 2005. In addition, Sanyo has also responded toChina RoHS (implemented March 1, 2007) and chemical regula-tions in the State of California, USA; Korea and other regions.To ensure that these chemical substances will never be used in

its products, Sanyo has constructed a system for managingchemical substances contained in products and set internal rulesapplicable to the entire Sanyo Group to control the chemicalsubstance data of each procured material and product.

To be successful in efforts to eliminate chemical substances inproducts, it is vital to have the cooperation of suppliers. In linewith this, in fiscal 2006 Sanyo started evaluation of the chemicalsubstance management system of suppliers and offeringinstructions, as well as management based on "Consent tonon-use" and "Certificate of non-use" for procured materials inaccordance with the "Sanyo Group Management Standards forEnvironmentally Hazardous Substances" Thus, Sanyo is workingto ensure data reliability.

*2 REACH: Registration, Evaluation, Authorisation and restriction of CHemicalsEuropean regulations pertaining to registration, evaluation, authorization,and restriction of chemical substances

*3 As of August 2007 (Source: Sanyo's internal data)*4 As of January 2008 (Source: Sanyo's internal data)

To facilitate product disassembly, allthe screws, which had been used onthe four corners of the top panel, arenow on the top surface. Also, to facili-tate door dismounting, a hook hasbeen included in the door mountinghardware.

Through efforts to reduce weightand volume, thermoplastic resin usagewas reduced by approximately 4kg compared to conven-tional models. For packaging materials, styrofoam usagewas reduced by 118g to 582g.

New drum-typewasher/dryerAWD-AQ3000

*1 Six chemical substances which may be contained in electric and electronicequipment: cadmium, lead, mercury, hexavalent chromium, PBB, and PBDE

[Management system for chemical substances in products]

tioner model (SGP-H560M1G etc.) weighing 800 kg, which is110 kg (12%) lighter compared to the same-type already-available 910 kg model and is the lightest among all themodels of the same class in the industry*3. This was made pos-sible through utilization of aluminum materials and a thorough-going structure/material review.

Further, Sanyo realized the industry's smallest in size andlightest in weight for its rotary 2-stage compressor modelusing natural refrigerant CO2 (C-CV153HOU etc.) *4.

Creation of Environmentally-conscious Products



TOPICS Drum-type Washer/Dryer Improved

[Green Procurement System Chart]

Level of environmental management system

Progress in green procurement

Information disclosure

Management system for chemicalsubstances in products

Product assessment

Environmentally-hazardous chemicalsubstances contained in products

Chemical substances used inmanufacturing process

Material andPurchase division

Product Planning andDesign division

Green Procurement

Supplier Survey

Product Survey

Design

Procurement

Production

Shipment

Row materialmanufacturers

Componentmanufacturers

Process

Information

Suppliers / OEMpartners

Data/Information

Evaluation of themanagement system

Environmentalmanagement incomponents and

materials

Consent to non-useCertificate of non-use

Measurement data

Confirmation

Confirmationand

measurement

Delivery specifications

Component database

Reduction of Environmental Impact in ProductsWe strive to develop and disseminate "environmentally-conscious products" to reduce theenvironmental impact via reduction of energy consumption, reduction of usage of chemicalsubstances with environmental impact, efficient usage of recycled materials, outstandingproduct durability, and constructing products in a way that facilitates recyclability.

■ Green Procurement PromotionThe Sanyo Group has been striving to reduce use of

environmentally-hazardous chemical substances through expand-ing green procurement both in Japan and overseas by purchas-ing articles that meet Sanyo's own environmental standards fromsuppliers that actively practice environmental protection.

The building of partnerships with suppliers is essential for thepromotion of green procurement. Every year from October toDecember, Sanyo investigates the situation at suppliers includingthe building of environmental management systems andrequests improvement as necessary. In addition, in 2006 Sanyostarted management system evaluations according to the Guide-lines for the Management of Chemical Substances in Productsnewly established by the Japan Green Procurement Survey Stan-dardization Initiative (JGPSSI). To facilitate management, Sanyoheld briefings for suppliers on the purpose of investigation,evaluation methods, and online questionnaire system.

Today, cooperation with suppliers regarding chemicalsubstances in products, in terms of data sharing and manage-ment system operation, is increasingly important due to thenecessity of observing REACH*2 in Europe etc. To this end,Sanyo is working to strengthen its management systemthroughout its supply chains.

■ Reducing Material Weight and VolumeIn environmentally-conscious design creation, one of the

impor tant themes is reduct ion of mater ia ls used,product/packaging volume, and product weight. Sanyoaddresses this as one of its product assessment evaluationitems (P33).

For example, Sanyo developed a gas heat pump air condi-

■ Designing Products that can be Easily RecycledTo facilitate proper treatment of used equipment, the Sanyo

Group strives to design products that can be easily recycled. Inaddition to holding "Recycling School" on a regular basis toprovide engineers with on-site study experience at a recyclingplant, in April 2007 the "Guidelines for Designing Easily-Recyclable Products" was issued, in which important points indesigning products are organized by following the equipmentdisassembly process. Practically, for drum-type washing/dryingmachines, which tend to be more difficult to recycle comparedto standard automatic washing machines due to their compli-cated structure with many parts, structural review was con-ducted to increase ease of disassembly.

■ Improving Energy EfficiencyThe Sanyo Group considers the strengthening of its efforts to

combat global warming to be the highest priority issue. Inaddressing the reduction of environmental impact in products,Sanyo focuses on development and dissemination of productsand parts that can contribute to reduction of CO2 emissionsfrom product use. In this way, Sanyo will help realize a low-carbon society.

The Sanyo Group has proprietary high-energy efficiency tech-nologies and solutions, which are utilized in various products,including HIT solar cell, "eneloop" – nickel-metal hydridebattery, "Eco Cute" – heat pump water heater, "enegreen" –supermarket showcase refrigerating system, and HEVrechargeable battery.HIT solar cell is capable of a high energy conversion efficiency

of 22.3% (cell) thanks to its high- quality juncture of single-crystalline silicon substrate and amorphous silicon layer andimproved solar cell surface shape.

"eneloop" has extremely low self-discharge characteristics,enabling minimum waste of charged energy."Eco Cute," using a natural refrigerant CO2 compressor, con-

tributes to energy efficiency improvement through high-efficiency heat pump technology and utilization of midnightpower. The government is also promoting dissemination ofheat pumps as part of its measures for CO2 emissions reduc-tion.

"enegreen" employs a W-Multi System that connects mul-tiple showcases and multiple refrigerating machines. Refriger-ating machines are equipped with a DC inverter compressor toeliminate wasteful operation caused by slipping peculiar toconventional AC motors, enabling higher energy efficiency. Inaddition, by interconnecting refrigerating machines an opti-mum store system can be provided. Further, even higherenergy efficiency is possible if this system is combined withSanyo's "Consolidated Energy Saving System for Stores" tounify management and control of store equipment such as airconditioners and lighting.

With the prospect of global warming and resource depletionHEV rechargeable batteries are expected to rapidly expand inthe future. Sanyo will accelerate development and commercial-ization of increasingly high-performance HEV batteries, toevolve current nickel-metal hydride batteries to next-generation nickel-metal hydride batteries and next-generationLithium-ion batteries.

■Managing Chemical Substances in ProductsAmid mounting concern over specified chemical substances in

products, the Sanyo Group made it a priority to conduct asurvey on chemical substances with a high environmentalimpact, including the six substances specified by EU RoHSDirective*1 and has been replacing these with safer substances.Consequently, Sanyo completed the removal of all six specifiedchemical substances from products produced in Japan andthose for the EU market at the manufacturing stage by the endof December 2005. In addition, Sanyo has also responded toChina RoHS (implemented March 1, 2007) and chemical regula-tions in the State of California, USA; Korea and other regions.To ensure that these chemical substances will never be used in

its products, Sanyo has constructed a system for managingchemical substances contained in products and set internal rulesapplicable to the entire Sanyo Group to control the chemicalsubstance data of each procured material and product.

To be successful in efforts to eliminate chemical substances inproducts, it is vital to have the cooperation of suppliers. In linewith this, in fiscal 2006 Sanyo started evaluation of the chemicalsubstance management system of suppliers and offeringinstructions, as well as management based on "Consent tonon-use" and "Certificate of non-use" for procured materials inaccordance with the "Sanyo Group Management Standards forEnvironmentally Hazardous Substances" Thus, Sanyo is workingto ensure data reliability.

*2 REACH: Registration, Evaluation, Authorisation and restriction of CHemicalsEuropean regulations pertaining to registration, evaluation, authorization,and restriction of chemical substances

*3 As of August 2007 (Source: Sanyo's internal data)*4 As of January 2008 (Source: Sanyo's internal data)

To facilitate product disassembly, allthe screws, which had been used onthe four corners of the top panel, arenow on the top surface. Also, to facili-tate door dismounting, a hook hasbeen included in the door mountinghardware.

Through efforts to reduce weightand volume, thermoplastic resin usagewas reduced by approximately 4kg compared to conven-tional models. For packaging materials, styrofoam usagewas reduced by 118g to 582g.

New drum-typewasher/dryerAWD-AQ3000

*1 Six chemical substances which may be contained in electric and electronicequipment: cadmium, lead, mercury, hexavalent chromium, PBB, and PBDE

[Management system for chemical substances in products]

tioner model (SGP-H560M1G etc.) weighing 800 kg, which is110 kg (12%) lighter compared to the same-type already-available 910 kg model and is the lightest among all themodels of the same class in the industry*3. This was made pos-sible through utilization of aluminum materials and a thorough-going structure/material review.

Further, Sanyo realized the industry's smallest in size andlightest in weight for its rotary 2-stage compressor modelusing natural refrigerant CO2 (C-CV153HOU etc.) *4.

Creation of Environmentally-conscious Products



【Recycling performance of specified kinds of discarded home appliances】

* "Units processed for recycling" and "Weight of the units recycled or other-wise processed" refer to the number and weight of the specified discardedhome appliances that underwent processing necessary for recycling duringfiscal 2007.

* Values are rounded down to the nearest integer.

【Valuable resources recovered from specified kinds of discarded home appliances】

【Portable Secondary Battery Collection System】

Collection

Transport

Registered recycler

JBRCRecycling members

Secondary battery manufacturersManufacturers of products using secondary batteries

Importers and sellers of secondary batteries

* Values are rounded down to the nearest integer.* "Other valuable resources" include plastics and other.

Secondary battery(NiCd, nickel-metal hydride, lithium-ion etc.)

Recycling cooperating storeRecycling cooperating local governmentRecycling cooperating business

Registered transporter

Expensesettlement

Expensesettlement


■ Recycling Used Home AppliancesBased on the Law for the Recycling of Specified Kinds of

Home Appliances, known as the Home Appliance RecyclingLaw, the Sanyo Group, as a manufacturer of home appliances,collects and recycles used product units of the four specifieditems (air conditioner, television, refrigerator/freezer, andwashing machine).

For fiscal 2007, a total of approx. 1,230 thousand used unitsof the four specified items were processed for recycling. Therecycling rates achieved were: 89% for air conditioners, 87%for televisions, 75% for refrigerator/freezers, and 84% forwashing machines.

■ Recycling Secondary BatteriesIn Japan, the Law for the Promotion of Effective Utilization of

Resources requires manufacturers of portable rechargeablebatteries (secondary batteries) and manufacturers and import-ers of products using secondary batteries to collect andrecycle used secondary batteries.

Voluntary collection and recycling of secondary batteries arebeing done through the collection system established andoperated by the "Japan Portable Rechargeable Battery Recy-cling Center (JBRC)" with applicable enterprises being theoperating members. Sanyo, as one of the founding parties ofJBRC, plays a central role in the construction of collectionroutes, thus proactively addressing collection and recycling ofsecondary batteries.

The amount of used secondary batteries collected by JBRC isover 1,000 tons a year and it is increasing yearly. Regardingthe recycling rate: Rate of Amount Reconverted intoResources (= Substance Quantity Reconverted into Resourcesx Metallic Element Content Percentage) to Collected Amount,over 70% has been achieved for NiCd and nickel-metalhydride batteries and approximately 60% for lithium-ionbatteries.

In the future, Sanyo will proactively provide continued coop-eration to JBRC and strive to increase the amount of usedsecondary batteries collected and recycled.

■ Reduction of Containers and PackagesTo comply with the Containers and Packaging Recycling

Law*1 every year the Sanyo Group calculates the annual con-sumption of containers and packaging materials and reportsthe result to the Japan Containers and Packaging RecyclingAssociation. In addition, Sanyo is fulfilling its duty to recyclecontainers and packaging materialsbased on the recycling consign-ment contract concluded with saidassociation.

Further, in response to a proposalof the Japan Business Federation in2005 regarding formulation of "Vol-untary Action Plan" to promote the3Rs*2 for containers and packages,as a member of the consumer-electronics industry the SanyoGroup is doing the following.

■ Promotion of Product AssessmentIn order to reduce environmental impact, the Sanyo Group

conducts product assessment (preliminary environmentalassessment of products) at the design and prototyping stagesfor all products of Sanyo, including household products,industrial products, and components.

To enable more detailed analysis and accordingly moreaccurate product assessment, Sanyo uses quantitative analysis,instead of conventionally-used qualitative analysis, as much aspossible to indicate the results for each item in numeric terms.For each year, targets are set for the respective productgroups and achievement of these targets is specified as arequirement for environmentally-conscious designing.Up until fiscal 2006, as a rule, products subject to assessment

*1 Law for promotion of sorted collec-tion and recycling of containers andpackaging

*2 Reduce, Reuse, and Recycle

● Developing packaging technologies to minimize environmental

impact in cooperation with various businesses in all packaging-

related fields

● Avoiding excess packaging and optimizing product strength to

enable maximum protection with minimum packaging

● Realizing improved environmentally-conscious logistics process

to reduce the use of containers and packages

● Offering consumer education to facilitate easy separate collec-

tion of waste materials

Voluntary Action Plan for Promoting 3Rs of Containers and Packaging

1. Reduction of weight/volume2. Use of recycled materials and parts3. Improvement on possibility of recycled materials, etc.4. Promotion on long term use5. Ease of collection/transportation6. Ease of manual disassembling/separating process7. Ease of shredding/separation process8. Packaging9. Safety

10. Environmental protection11. Conservation of energy and resources at use phase12. Distribution of Information13. Reduction of environmental impacts in production phase

The following items apply to appropriate products:14. Standby power consumption15. Recycling of portable rechargeable batteries

Product Assessment Evaluation Items

Example of packaging materialsreduction (Eco Cute)

【Changes in Number of Product Assessments Conducted (Cumulative Total)】

were limited to products manufactured in Japan and thosesold in Japan. As of fiscal 2007, this scope was expanded to allproducts manufactured and sold worldwide. In addition,during fiscal 2007, Sanyo held in-house seminars regardingproduct assessment and easy-to-recycle designing, primarilyfor product designers at major manufacturing facilities.

Further, in response to the standards for recycling of elec-tronic products established in fiscal 2007: JIS C 9911 "Calcula-tion and display methods of recycled and reuse indicator ofelectric or electronic equipment" and JIS C 9912 "The markingfor identification of plastic parts for electrical and electronicequipment," Sanyo promotes product assessment basedthereon.

Units recovered at designated sites (units)

Units processed for recycling (units)

Weight of the units recycled or otherwiseprocessed (t)

Weight of the units recycled (t)

Recycling rate (%)

Iron (t)

Copper (t)

Aluminum (t)

Mixture of nonferrous and ferrous metals (t)

CRT glass (t)

Other valuable resources (t)

Total weight (t)

177,592

176,043

7,278

6,536

89

1,726

439

1,074

2,505

―

790

6,536

319,030

311,810

9,001

7,846

87

1,058

362

4

23

4,430

1,967

7,846

8,504

259

60

3,088

―

3,772

15,685

5,044

199

60

1,937

―

3,078

10,320

364,277

364,247

20,896

15,685

75

381,938

381,585

12,224

10,320

84

0

1,000

2,000

3,000

4,000

2007

3,832

2006

3,494

2005

3,190

2004

2,852

2003

2,562

（Fiscal year）

Airconditioner Television Refrigerator/

FreezerWashingmachineCategory


FreezerWashingmachineItem

(Total)

Promotion of Product Recycling



【Recycling performance of specified kinds of discarded home appliances】

* "Units processed for recycling" and "Weight of the units recycled or other-wise processed" refer to the number and weight of the specified discardedhome appliances that underwent processing necessary for recycling duringfiscal 2007.

* Values are rounded down to the nearest integer.

【Valuable resources recovered from specified kinds of discarded home appliances】

【Portable Secondary Battery Collection System】

Collection

Transport

Registered recycler

JBRCRecycling members

Secondary battery manufacturersManufacturers of products using secondary batteries

Importers and sellers of secondary batteries

* Values are rounded down to the nearest integer.* "Other valuable resources" include plastics and other.

Secondary battery(NiCd, nickel-metal hydride, lithium-ion etc.)

Recycling cooperating storeRecycling cooperating local governmentRecycling cooperating business

Registered transporter

Expensesettlement

Expensesettlement


■ Recycling Used Home AppliancesBased on the Law for the Recycling of Specified Kinds of

Home Appliances, known as the Home Appliance RecyclingLaw, the Sanyo Group, as a manufacturer of home appliances,collects and recycles used product units of the four specifieditems (air conditioner, television, refrigerator/freezer, andwashing machine).

For fiscal 2007, a total of approx. 1,230 thousand used unitsof the four specified items were processed for recycling. Therecycling rates achieved were: 89% for air conditioners, 87%for televisions, 75% for refrigerator/freezers, and 84% forwashing machines.

■ Recycling Secondary BatteriesIn Japan, the Law for the Promotion of Effective Utilization of

Resources requires manufacturers of portable rechargeablebatteries (secondary batteries) and manufacturers and import-ers of products using secondary batteries to collect andrecycle used secondary batteries.

Voluntary collection and recycling of secondary batteries arebeing done through the collection system established andoperated by the "Japan Portable Rechargeable Battery Recy-cling Center (JBRC)" with applicable enterprises being theoperating members. Sanyo, as one of the founding parties ofJBRC, plays a central role in the construction of collectionroutes, thus proactively addressing collection and recycling ofsecondary batteries.

The amount of used secondary batteries collected by JBRC isover 1,000 tons a year and it is increasing yearly. Regardingthe recycling rate: Rate of Amount Reconverted intoResources (= Substance Quantity Reconverted into Resourcesx Metallic Element Content Percentage) to Collected Amount,over 70% has been achieved for NiCd and nickel-metalhydride batteries and approximately 60% for lithium-ionbatteries.

In the future, Sanyo will proactively provide continued coop-eration to JBRC and strive to increase the amount of usedsecondary batteries collected and recycled.

■ Reduction of Containers and PackagesTo comply with the Containers and Packaging Recycling

Law*1 every year the Sanyo Group calculates the annual con-sumption of containers and packaging materials and reportsthe result to the Japan Containers and Packaging RecyclingAssociation. In addition, Sanyo is fulfilling its duty to recyclecontainers and packaging materialsbased on the recycling consign-ment contract concluded with saidassociation.

Further, in response to a proposalof the Japan Business Federation in2005 regarding formulation of "Vol-untary Action Plan" to promote the3Rs*2 for containers and packages,as a member of the consumer-electronics industry the SanyoGroup is doing the following.

■ Promotion of Product AssessmentIn order to reduce environmental impact, the Sanyo Group

conducts product assessment (preliminary environmentalassessment of products) at the design and prototyping stagesfor all products of Sanyo, including household products,industrial products, and components.

To enable more detailed analysis and accordingly moreaccurate product assessment, Sanyo uses quantitative analysis,instead of conventionally-used qualitative analysis, as much aspossible to indicate the results for each item in numeric terms.For each year, targets are set for the respective productgroups and achievement of these targets is specified as arequirement for environmentally-conscious designing.Up until fiscal 2006, as a rule, products subject to assessment

*1 Law for promotion of sorted collec-tion and recycling of containers andpackaging

*2 Reduce, Reuse, and Recycle

● Developing packaging technologies to minimize environmental

impact in cooperation with various businesses in all packaging-

related fields

● Avoiding excess packaging and optimizing product strength to

enable maximum protection with minimum packaging

● Realizing improved environmentally-conscious logistics process

to reduce the use of containers and packages

● Offering consumer education to facilitate easy separate collec-

tion of waste materials

Voluntary Action Plan for Promoting 3Rs of Containers and Packaging

1. Reduction of weight/volume2. Use of recycled materials and parts3. Improvement on possibility of recycled materials, etc.4. Promotion on long term use5. Ease of collection/transportation6. Ease of manual disassembling/separating process7. Ease of shredding/separation process8. Packaging9. Safety

10. Environmental protection11. Conservation of energy and resources at use phase12. Distribution of Information13. Reduction of environmental impacts in production phase

The following items apply to appropriate products:14. Standby power consumption15. Recycling of portable rechargeable batteries

Product Assessment Evaluation Items

Example of packaging materialsreduction (Eco Cute)

【Changes in Number of Product Assessments Conducted (Cumulative Total)】

were limited to products manufactured in Japan and thosesold in Japan. As of fiscal 2007, this scope was expanded to allproducts manufactured and sold worldwide. In addition,during fiscal 2007, Sanyo held in-house seminars regardingproduct assessment and easy-to-recycle designing, primarilyfor product designers at major manufacturing facilities.

Further, in response to the standards for recycling of elec-tronic products established in fiscal 2007: JIS C 9911 "Calcula-tion and display methods of recycled and reuse indicator ofelectric or electronic equipment" and JIS C 9912 "The markingfor identification of plastic parts for electrical and electronicequipment," Sanyo promotes product assessment basedthereon.

Units recovered at designated sites (units)

Units processed for recycling (units)

Weight of the units recycled or otherwiseprocessed (t)

Weight of the units recycled (t)

Recycling rate (%)

Iron (t)

Copper (t)

Aluminum (t)

Mixture of nonferrous and ferrous metals (t)

CRT glass (t)

Other valuable resources (t)

Total weight (t)

177,592

176,043

7,278

6,536

89

1,726

439

1,074

2,505

―

790

6,536

319,030

311,810

9,001

7,846

87

1,058

362

4

23

4,430

1,967

7,846

8,504

259

60

3,088

―

3,772

15,685

5,044

199

60

1,937

―

3,078

10,320

364,277

364,247

20,896

15,685

75

381,938

381,585

12,224

10,320

84

0

1,000

2,000

3,000

4,000

2007

3,832

2006

3,494

2005

3,190

2004

2,852

2003

2,562

（Fiscal year）


FreezerWashingmachineCategory


FreezerWashingmachineItem

(Total)

Promotion of Product Recycling



【Standards for Environmentally-Conscious Quality Products】

0

10

20

30

40

50

60

70

（%）80

20072006200520042003

24.4

41.7

49.9

58.262.4

（Fiscal year）


When developing a new product, special attention shouldbe paid to the various impacts that the product can have onthe environment. The Sanyo Group makes it obligatory thatall new products be compliant with the “Group ProductAssessment Regulations,” “Group Green Procurement Regu-lations,” and “Group Management Regulations for Environ-mentally Hazardous Substances in Products,” so that allSanyo products, including general home appliances, indus-trial equipment, and components, with the aim that all prod-ucts be environmentally-conscious.

Among these environmentally-conscious products, thosehaving cleared the internal standards set by the Sanyo Groupare called “Advanced Environmental Products.” Sanyo has alsoselected products with the highest-level of environmental con-sideration in the industry from among the Advanced Environ-mental Products and calls them “Top-level Environmental Prod-ucts.”

For fiscal 2007, in the total sales, the share of “Top-level Envi-ronmental Products” was 8.8% with the initial target being 8%,and that of “Advanced Environmental Products” was 62.4%with the initial target being 60%, thus both exceeded theirinitial targets.

Product weight was reducedby 110 kg to 800 kg throughuse of aluminum materials andstructure/material review,achieving the lightest weightamong all the models of thesame class in the industry.As of August 2007 (Source: Sanyo’sinternal data)In the case of SGP-H560M1G

Recognized in the industry ashaving top-level reliability (highdurability / high-temperature /humidity tolerance) and anultralong operating life (2,000hours ) guaranteed at anextreme high temperature of125℃.

This small lightweight high-definition digital movie camerawith a main body weight ofapproximately 268 g (notincluding battery and media)and volume of approximately272 cc is designed to saveenergy by consolidating theimage compression IC andsignal processing IC into one.

C o m p a r e d t o F Y 2 0 0 2models, reduction of energyconsumption by over 30% ispossible.

Each module can help reduceCO2 emission by 77 kg-CO2*2

every year.

Approximately 50 hours ofcontinuous use is possiblewith just one size AA battery.The world’s longest run time.As of April 2008 with linearP CM r e c o r de r ( S our c e :Sanyo’s internal data)

Compared to paper bagvacuum cleaners, paper usagecan be reduced by 65% (686g) over 7 years and no filterwashing is necessary for anextended time of 10 years,enabling water saving byapproximately 600 liters over10 years.

Its unique structure developedby Sanyo is capable of anindustry’s lowest-level ESL andESR*3 enabling reduction ofthe number of units used inequipment and resourcesaving.

Sanyo’s electric shavers arethe smallest and lightestamong all the reciprocating-type shavers (standard diffu-sion models) of equivalentperformance in the industry.(SV-AS7: 122g)As of March 2008 (Source: Sanyo’sinternal data)

Using Sanyo’s original ISB®*1

technology to enable theindustry’s highest density andlowest profile, an industry’ssmallest/lightest-levelmultichip system was realized,which includes four or morechips in a package.As of March 2008 (Source: Sanyo’sinternal data)

【Share of Advanced Environmental Products in total sales】

Top-levelEnvironmentalProducts

AdvancedEnvironmentalProducts

(1) Small size and lightweight

(2) Higher utilization of recycled components

(3) Higher utilization of recyclable components

(4) Longer life

(5) Lower power and water consumption

(6) Greater ease of disassembly

(7) Reduced use of buffering agent

(8) Other environmental measures incorporated

(9) Environmental consciousness through an innovative concept

Products that meet thelevel-2 standard andrank at the top in thesame industry in one ormore of the items onthe right

Products that meet thelevel-1 standard andachieve higher environ-mental performance inat least 3 of the itemson the right.

Products with environmentalquality above certain levelsProducts that meet require-ments under applicable lawsand regulations and Sanyo’sinternal rules

(1) Resource conservation (higher utilization ofrecyclable components, reduced weight, longer life)

(2) More effective energy conservation

(3) Greater ease of recycling (indication of materialsused, ease of disassembly)

(4) Reduced use of chemical substances

(5) Less packaging materials

(6) Awarded an external prize

(1) Group Product Assessment Regulations

(2) Group Green Procurement Regulations

(3) Group Management Regulations for EnvironmentallyHazardous Substances In Products

Level 3 (Environmentally-Conscious Quality Products)


Level 1

*2 In the case of a module installed in Osaka, Japan directly pointing south at an angle of 30 degrees.

*3 ESL: equivalent series inductance, ESR: equivalent series resistance*1 Integrated System in Board

M1 Series (Total 35 models)

■ Examples of Top-level/Advanced Environmental ProductsResource Saving

Gas Heat Pump Air Conditioner SGP-H560M1G and other

Resource Saving

Resource Saving

POSCAP (Tantalum Solid Capacitors with Conductive Polymer) TPLF Series

Electric Shaver SV-AS7, AT7, AM7

Resource Saving High Efficiency / Energy SavingDigital Movie Camera DMX-HD1010

Resource SavingImage Stabilization Multichip LSI LC8981 Series

Resource SavingOS-CON (Aluminum Solid Capacitors with Conductive Polymer) SVPD Series

Resource SavingVacuum Cleaner SC-XD1, XD21

High Efficiency / Energy SavingVaporizing Humidifier CFK-VW300A, VW500A, VW700A

High Efficiency / Energy SavingHIT Solar Cell Module HIP-210BHI

High Efficiency / Energy SavingDigital Sound Recorder ICR-PS1000M (K)

→　www.sanyo.com/environment/en/env/access

Top-level Environmental Products, AdvancedEnvironmental Products

Making All Products Environmentally Conscious



【Standards for Environmentally-Conscious Quality Products】

0

10

20

30

40

50

60

70

（%）80

20072006200520042003

24.4

41.7

49.9

58.262.4

（Fiscal year）


When developing a new product, special attention shouldbe paid to the various impacts that the product can have onthe environment. The Sanyo Group makes it obligatory thatall new products be compliant with the “Group ProductAssessment Regulations,” “Group Green Procurement Regu-lations,” and “Group Management Regulations for Environ-mentally Hazardous Substances in Products,” so that allSanyo products, including general home appliances, indus-trial equipment, and components, with the aim that all prod-ucts be environmentally-conscious.

Among these environmentally-conscious products, thosehaving cleared the internal standards set by the Sanyo Groupare called “Advanced Environmental Products.” Sanyo has alsoselected products with the highest-level of environmental con-sideration in the industry from among the Advanced Environ-mental Products and calls them “Top-level Environmental Prod-ucts.”

For fiscal 2007, in the total sales, the share of “Top-level Envi-ronmental Products” was 8.8% with the initial target being 8%,and that of “Advanced Environmental Products” was 62.4%with the initial target being 60%, thus both exceeded theirinitial targets.

Product weight was reducedby 110 kg to 800 kg throughuse of aluminum materials andstructure/material review,achieving the lightest weightamong all the models of thesame class in the industry.As of August 2007 (Source: Sanyo’sinternal data)In the case of SGP-H560M1G

Recognized in the industry ashaving top-level reliability (highdurability / high-temperature /humidity tolerance) and anultralong operating life (2,000hours ) guaranteed at anextreme high temperature of125℃.

This small lightweight high-definition digital movie camerawith a main body weight ofapproximately 268 g (notincluding battery and media)and volume of approximately272 cc is designed to saveenergy by consolidating theimage compression IC andsignal processing IC into one.

C o m p a r e d t o F Y 2 0 0 2models, reduction of energyconsumption by over 30% ispossible.

Each module can help reduceCO2 emission by 77 kg-CO2*2

every year.

Approximately 50 hours ofcontinuous use is possiblewith just one size AA battery.The world’s longest run time.As of April 2008 with linearP CM r e c o r de r ( S our c e :Sanyo’s internal data)

Compared to paper bagvacuum cleaners, paper usagecan be reduced by 65% (686g) over 7 years and no filterwashing is necessary for anextended time of 10 years,enabling water saving byapproximately 600 liters over10 years.

Its unique structure developedby Sanyo is capable of anindustry’s lowest-level ESL andESR*3 enabling reduction ofthe number of units used inequipment and resourcesaving.

Sanyo’s electric shavers arethe smallest and lightestamong all the reciprocating-type shavers (standard diffu-sion models) of equivalentperformance in the industry.(SV-AS7: 122g)As of March 2008 (Source: Sanyo’sinternal data)

Using Sanyo’s original ISB®*1

technology to enable theindustry’s highest density andlowest profile, an industry’ssmallest/lightest-levelmultichip system was realized,which includes four or morechips in a package.As of March 2008 (Source: Sanyo’sinternal data)

【Share of Advanced Environmental Products in total sales】

Top-levelEnvironmentalProducts

AdvancedEnvironmentalProducts

(1) Small size and lightweight

(2) Higher utilization of recycled components

(3) Higher utilization of recyclable components

(4) Longer life

(5) Lower power and water consumption

(6) Greater ease of disassembly

(7) Reduced use of buffering agent

(8) Other environmental measures incorporated

(9) Environmental consciousness through an innovative concept

Products that meet thelevel-2 standard andrank at the top in thesame industry in one ormore of the items onthe right

Products that meet thelevel-1 standard andachieve higher environ-mental performance inat least 3 of the itemson the right.

Products with environmentalquality above certain levelsProducts that meet require-ments under applicable lawsand regulations and Sanyo’sinternal rules

(1) Resource conservation (higher utilization ofrecyclable components, reduced weight, longer life)

(2) More effective energy conservation

(3) Greater ease of recycling (indication of materialsused, ease of disassembly)

(4) Reduced use of chemical substances

(5) Less packaging materials

(6) Awarded an external prize

(1) Group Product Assessment Regulations

(2) Group Green Procurement Regulations

(3) Group Management Regulations for EnvironmentallyHazardous Substances In Products



Level 1

*2 In the case of a module installed in Osaka, Japan directly pointing south at an angle of 30 degrees.

*3 ESL: equivalent series inductance, ESR: equivalent series resistance*1 Integrated System in Board

M1 Series (Total 35 models)

■ Examples of Top-level/Advanced Environmental ProductsResource Saving

Gas Heat Pump Air Conditioner SGP-H560M1G and other

Resource Saving

Resource Saving

POSCAP (Tantalum Solid Capacitors with Conductive Polymer) TPLF Series

Electric Shaver SV-AS7, AT7, AM7

Resource Saving High Efficiency / Energy SavingDigital Movie Camera DMX-HD1010

Resource SavingImage Stabilization Multichip LSI LC8981 Series

Resource SavingOS-CON (Aluminum Solid Capacitors with Conductive Polymer) SVPD Series

Resource SavingVacuum Cleaner SC-XD1, XD21

High Efficiency / Energy SavingVaporizing Humidifier CFK-VW300A, VW500A, VW700A

High Efficiency / Energy SavingHIT Solar Cell Module HIP-210BHI

High Efficiency / Energy SavingDigital Sound Recorder ICR-PS1000M (K)


Top-level Environmental Products, AdvancedEnvironmental Products

Making All Products Environmentally Conscious



TOPICS Fuel switching from Heavy Oil to LNG0

100

200

300

400

600

500

700

800

2007

643 636

72%

2006

701

70%

2005

726

66%

2004

713

63%

20031990

504

100%

0

20

40

60

80

100

（%）120

76%

CO2 emissions (1,000 t-CO2)CO2 emissions per Basic Unit of Production Output (compared to FY 1990)

（Fiscal year）

【Changes in CO2 emissions (Manufacturing facilities in Japan)】

* For the CO2 emission factor for electricity purchased each fiscal year, thefactor for all power source average (generating end) announced eachfiscal year by the Federation of Electric Power Companies of Japan isused. However, since the CO2 emission factor for fiscal 2007 has not beenannounced yet, the emission factor for fiscal 2006 was temporarily used,which is 0.410 kg-CO2/kWh.

* Data in this table is calculated based on the GHG protocol. It should benoted that the data for each fiscal year is not absolute, because thenumber of facilities covered varies from year to year due to M&A.

0

50

100

150

200

（1000t-CO2）

9388

114

146180

130

200720062005200420031995（Fiscal year）

【Change in greenhouse gas emissions other than CO2 (Manufacturing Facilities in Japan)]】

【Changes in electricity generated by solar power generation systems*5

and CO2 equivalent (Major facilities in Japan)】

020406080

100120140160

（100 mil MJ）

2007

136 138

2006

146

2005

153

2004

148


【Change in energy consumption (Manufacturing facilities in Japan)]

Solar Ark (Gifu Plant)

Modal shift

0

20

40

60

80

100

120

140 Electricity generated

2007

（469）

2006

（457）

2005

（442）

2004

（431）

2003

（409）

1995

（20）

Figures in parenthesis indicate CO2 equivalent t-CO2*6

（Fiscal year）

（1,000t-CO2）

（10,000kWh）

Reduction of Environmental Impact in Business Activities

■Promoting Energy ConservationBy introducing cogeneration systems, Sanyo’s factories andlarge-scale buildings utilize the exhaust heat generatedthrough independent power generation to produce steam andhot water, which is then used for cooling and warming ofproduction processes and facilities. The usage of the exhaustheat improves energy-use efficiency in production processesand thus contributes to energy conservation.

■ Prevention of Global Warming in Production ProcessReducing CO2 Emissions

With the aim of achieving “Carbon Neutral” status (P25), theSanyo Group strives to reduce CO2 emissions from all of itsbusiness activities, including manufacturing, development, andsales.

For fiscal 2007, gross CO2 emissions were 636,000 tonswhich is approximately 1% lower compared to the previousfiscal year. However, primarily due to a lower domesticproduction rate of electronic information equipment, the totalCO2 emissions per basic unit of production output for alldomestic manufacturing facilities*1 was approximately 4%higher than the previous fiscal year.

Through intensively promoting reduction of energy consump-tion of manufacturing equipment and air conditioners andefficiency enhancement/streamlining of the productionprocess, Sanyo’s manufacturing facilities work to minimizeelectricity/fuel consumption and maximize reduction of CO2

emissions in the production process. Further, Sanyo is expedit-ing introduction of fuels causing relatively low CO2 emissions,such as natural gas and LNG (liquid natural gas), and newenergy sources, including solar cells, cogeneration (naturalgas), and waste heat utilization.

In the future, to address global warming, Sanyo will work tocontrol CO2 emissions by improving energy efficiency in theproduction process as well as expanding the use of recharge-able batteries and solar cells.

■ Introducing Renewable EnergyThe Sanyo Group is striving to develop and disseminate clean

energy technology using solar power and has introduced solarpower generation systems at 10 major facilities in Japan toplay a role in reducing CO2 emissions. Solar Ark, Sanyo’slarge-scale photovoltaic power generation facility in Gifu Plant,which started operation in December 2001, has 5,046 solarpanels covering the exterior surface. Its 630kw generatingcapacity is one of the largest generation capacities in theworld, and approximately 620,000kWh was generated in fiscal2007. The generated power is supplied to the plant via asubstation located on the premises.

Curtailing the Emission of Greenhouse Gases Other than CO2

In the manufacturing process of semiconductors and relatedproducts, the Sanyo Group uses greenhouse gases other thanCO2, such as perfluorocarbon (PFC), sulfur hexafluoride (SF6),and hydrofluorocarbon (HFC). These gases account for approx.12% of the total greenhouse gas emissions. Sanyo works toreduce consumption and emission of these gases and isexpediting their replacement with other substances.

Specifically, regarding PFCs, in the semiconductor cleaningprocess Sanyo has implemented gas conversion fromhexafluoroethane (C2F6) to perfluoropropane (C3F8) which hasrelatively small Global Warming Potential*2. In addition, Sanyois proactively considering shifting to carbonyl fluoride (COF2)which causes very little greenhouse gas after reaction. As aresult, for fiscal 2007 the emission of greenhouse gases otherthan CO2 was 5% lower than the previous year (32% lowerthan in fiscal 1995).

Prevention of Global Warming in LogisticsSANYO Electric Logistics Co., Ltd. offers logistics solution

services for storage, loading, shipping, and delivery using the3PL system*3. To reduce greenhouse gas emission, the com-pany aims to realize comprehensive and consolidated distribu-tion, and to do so utilizes the network that connects its basesand relevant companies to practice shared delivery andround-trip transportation which transports goods bothoutbound and inbound.

In addition, the Tottori branch of SANYO Electric LogisticsCo., Ltd. is promoting a modal shift, which utilizes rail andmarine transport instead of trucking. As a result of promotingthe utilization of JR transport (5-ton containers) and ship trans-port (15-ton containers), for fiscal 2007 its rail/ship transportsmade up approximately 7% of total shipments.

At the same time, the Sanyo Group reduced domestic trucktransport by landing imported goods transported by ship at aport closer to the final destination, resulting in reduction ofestimated annual CO2 emis-sions by approximately 500tons for fiscal 2007.

Pro-environmental Activities in OfficesThe Sanyo Group intensively promotes energy-saving activities

at the headquarters buildings, Sanyo office buildings, and leasedbuildings, such as setting air-conditioner thermostats at the speci-fied temperature (28℃ or higher for summer and 20℃ or lowerfor winter), practicing “Cool Biz” and “Warm Biz,” and turning offair conditioners, lighting, and monitors when not in use. Throughair-conditioning control during summer (June – September) andwinter (December – March), estimated CO2 reduction of approxi-mately 1,700 tons is expected. Further, in fiscal 2007 Sanyo againresponded to the “CO2 Reduction/Light Down Campaign” andturned off its 44 neon signs in major cities in Japan, includingthose on office buildings of the Sanyo Group.

The Sanyo Group continues its efforts to reduce environmentalimpact in business activities with prevention of global warming,waste reduction, recycling of resources, and chemical substancecontrol measures as top priority issues.

*1 CO2 emissions per Basic Unit of Production Output = CO2 emissions ÷[gross production output÷ corporate goods price index published by theBank of Japan]

*2 Global Warming Potential: An indicator representing the degree of effecton global warming. The degree is calculated based on CO2 as “1.”

*3 3PL: 3rd Party Logistics. Practiceof outsourcing services in whichall corporate logistics functionsare commiss ioned to onelogistics agent.

*5 Estimate values are included.*6 CO2 emission factor is calculated based on 0.410kg-CO2/kWh.

The Sumoto Plant and Tokushima Plant switched fuel for theproduction process and air conditioner from conventionally-usedheavy oil to LNG (liquid natural gas) which causes low SOx (sulfuroxide) emission and enables generation of the same calorific powerwith less CO2 emissions compared to coal and oil. Switching to LNGresulted in significant reduction of CO2 emissions per unit of produc-tion output*4 as well as lowering environmental impact on the air.

*4 CO2 emissions per unit of production output = CO2 emissions÷ gross production output

Prevention of Global Warming



TOPICS Fuel switching from Heavy Oil to LNG0

100

200

300

400

600

500

700

800

2007

643 636

72%

2006

701

70%

2005

726

66%

2004

713

63%

20031990

504

100%

0

20

40

60

80

100

（%）120

76%

CO2 emissions (1,000 t-CO2)CO2 emissions per Basic Unit of Production Output (compared to FY 1990)

（Fiscal year）

【Changes in CO2 emissions (Manufacturing facilities in Japan)】

* For the CO2 emission factor for electricity purchased each fiscal year, thefactor for all power source average (generating end) announced eachfiscal year by the Federation of Electric Power Companies of Japan isused. However, since the CO2 emission factor for fiscal 2007 has not beenannounced yet, the emission factor for fiscal 2006 was temporarily used,which is 0.410 kg-CO2/kWh.

* Data in this table is calculated based on the GHG protocol. It should benoted that the data for each fiscal year is not absolute, because thenumber of facilities covered varies from year to year due to M&A.

0

50

100

150

200

（1000t-CO2）

9388

114

146180

130

200720062005200420031995（Fiscal year）

【Change in greenhouse gas emissions other than CO2 (Manufacturing Facilities in Japan)]】

【Changes in electricity generated by solar power generation systems*5

and CO2 equivalent (Major facilities in Japan)】

020406080

100120140160

（100 mil MJ）

2007

136 138

2006

146

2005

153

2004

148


【Change in energy consumption (Manufacturing facilities in Japan)]

Solar Ark (Gifu Plant)

Modal shift

0

20

40

60

80

100

120

140 Electricity generated

2007

（469）

2006

（457）

2005

（442）

2004

（431）

2003

（409）

1995

（20）

Figures in parenthesis indicate CO2 equivalent t-CO2*6

（Fiscal year）

（1,000t-CO2）

（10,000kWh）


■Promoting Energy ConservationBy introducing cogeneration systems, Sanyo’s factories andlarge-scale buildings utilize the exhaust heat generatedthrough independent power generation to produce steam andhot water, which is then used for cooling and warming ofproduction processes and facilities. The usage of the exhaustheat improves energy-use efficiency in production processesand thus contributes to energy conservation.

■ Prevention of Global Warming in Production ProcessReducing CO2 Emissions

With the aim of achieving “Carbon Neutral” status (P25), theSanyo Group strives to reduce CO2 emissions from all of itsbusiness activities, including manufacturing, development, andsales.

For fiscal 2007, gross CO2 emissions were 636,000 tonswhich is approximately 1% lower compared to the previousfiscal year. However, primarily due to a lower domesticproduction rate of electronic information equipment, the totalCO2 emissions per basic unit of production output for alldomestic manufacturing facilities*1 was approximately 4%higher than the previous fiscal year.

Through intensively promoting reduction of energy consump-tion of manufacturing equipment and air conditioners andefficiency enhancement/streamlining of the productionprocess, Sanyo’s manufacturing facilities work to minimizeelectricity/fuel consumption and maximize reduction of CO2

emissions in the production process. Further, Sanyo is expedit-ing introduction of fuels causing relatively low CO2 emissions,such as natural gas and LNG (liquid natural gas), and newenergy sources, including solar cells, cogeneration (naturalgas), and waste heat utilization.

In the future, to address global warming, Sanyo will work tocontrol CO2 emissions by improving energy efficiency in theproduction process as well as expanding the use of recharge-able batteries and solar cells.

■ Introducing Renewable EnergyThe Sanyo Group is striving to develop and disseminate clean

energy technology using solar power and has introduced solarpower generation systems at 10 major facilities in Japan toplay a role in reducing CO2 emissions. Solar Ark, Sanyo’slarge-scale photovoltaic power generation facility in Gifu Plant,which started operation in December 2001, has 5,046 solarpanels covering the exterior surface. Its 630kw generatingcapacity is one of the largest generation capacities in theworld, and approximately 620,000kWh was generated in fiscal2007. The generated power is supplied to the plant via asubstation located on the premises.

Curtailing the Emission of Greenhouse Gases Other than CO2

In the manufacturing process of semiconductors and relatedproducts, the Sanyo Group uses greenhouse gases other thanCO2, such as perfluorocarbon (PFC), sulfur hexafluoride (SF6),and hydrofluorocarbon (HFC). These gases account for approx.12% of the total greenhouse gas emissions. Sanyo works toreduce consumption and emission of these gases and isexpediting their replacement with other substances.

Specifically, regarding PFCs, in the semiconductor cleaningprocess Sanyo has implemented gas conversion fromhexafluoroethane (C2F6) to perfluoropropane (C3F8) which hasrelatively small Global Warming Potential*2. In addition, Sanyois proactively considering shifting to carbonyl fluoride (COF2)which causes very little greenhouse gas after reaction. As aresult, for fiscal 2007 the emission of greenhouse gases otherthan CO2 was 5% lower than the previous year (32% lowerthan in fiscal 1995).

Prevention of Global Warming in LogisticsSANYO Electric Logistics Co., Ltd. offers logistics solution

services for storage, loading, shipping, and delivery using the3PL system*3. To reduce greenhouse gas emission, the com-pany aims to realize comprehensive and consolidated distribu-tion, and to do so utilizes the network that connects its basesand relevant companies to practice shared delivery andround-trip transportation which transports goods bothoutbound and inbound.

In addition, the Tottori branch of SANYO Electric LogisticsCo., Ltd. is promoting a modal shift, which utilizes rail andmarine transport instead of trucking. As a result of promotingthe utilization of JR transport (5-ton containers) and ship trans-port (15-ton containers), for fiscal 2007 its rail/ship transportsmade up approximately 7% of total shipments.

At the same time, the Sanyo Group reduced domestic trucktransport by landing imported goods transported by ship at aport closer to the final destination, resulting in reduction ofestimated annual CO2 emis-sions by approximately 500tons for fiscal 2007.

Pro-environmental Activities in OfficesThe Sanyo Group intensively promotes energy-saving activities

at the headquarters buildings, Sanyo office buildings, and leasedbuildings, such as setting air-conditioner thermostats at the speci-fied temperature (28℃ or higher for summer and 20℃ or lowerfor winter), practicing “Cool Biz” and “Warm Biz,” and turning offair conditioners, lighting, and monitors when not in use. Throughair-conditioning control during summer (June – September) andwinter (December – March), estimated CO2 reduction of approxi-mately 1,700 tons is expected. Further, in fiscal 2007 Sanyo againresponded to the “CO2 Reduction/Light Down Campaign” andturned off its 44 neon signs in major cities in Japan, includingthose on office buildings of the Sanyo Group.

The Sanyo Group continues its efforts to reduce environmentalimpact in business activities with prevention of global warming,waste reduction, recycling of resources, and chemical substancecontrol measures as top priority issues.

*1 CO2 emissions per Basic Unit of Production Output = CO2 emissions ÷[gross production output÷ corporate goods price index published by theBank of Japan]

*2 Global Warming Potential: An indicator representing the degree of effecton global warming. The degree is calculated based on CO2 as “1.”

*3 3PL: 3rd Party Logistics. Practiceof outsourcing services in whichall corporate logistics functionsare commiss ioned to onelogistics agent.

*5 Estimate values are included.*6 CO2 emission factor is calculated based on 0.410kg-CO2/kWh.

The Sumoto Plant and Tokushima Plant switched fuel for theproduction process and air conditioner from conventionally-usedheavy oil to LNG (liquid natural gas) which causes low SOx (sulfuroxide) emission and enables generation of the same calorific powerwith less CO2 emissions compared to coal and oil. Switching to LNGresulted in significant reduction of CO2 emissions per unit of produc-tion output*4 as well as lowering environmental impact on the air.

*4 CO2 emissions per unit of production output = CO2 emissions÷ gross production output

Prevention of Global Warming



Amount of PRTR substances used

Amount released into environment

Amount transferred

Amount consumed as product

Amount removed

Amount recycled

FY 2006

14,952

44

246

14,057

58

547

FY 2007

14,774

42

208

13,829

85

611

【PRTR survey results (Manufacturing facilities in Japan)】

Indicator

Amount of finaldisposal

Final disposal rate

FY 2006 Results

34,000 tons

1.6%

FY 2010 Target (Before review)

Not more than 169,000 tons

－

FY 2010 Target (After review)

Not more than 46,000 tons(89% less than FY 1990)

Not more than 2%

【Targets for Waste Generation by Electric/Electronic Industry】

0

20,000

40,000

60,000

80,000

100,000

（t）120,000

2006 200720052004

112,826102,274 101,023

90,390

1,749

1.04

0.53

0.260.18

545 265 1600.0

0.5

1.0

1.5

（%）2.0

Total waste generatedAmount of final disposal

Final disposal rate

（Fiscal year）

【Amount of waste discharged and final disposal rate(Domestic facilities of the Sanyo Group)】

【Changes in Water Consumption】

0

500

1,500

1,000

2,000Overseas non-ground waterDomestic non-ground water

20072006200520042003

1,843

400

1,499

376

1,473

1,1651,302

501

374

401

Overseas ground waterDomestic groundwater

～～

196

355414

459

3931 3 18 29

（Unit:t）

314

（Fiscal year）

（10,000m3）


■ Controlling Waste GenerationThe Japanese electric/electronic industry group reached its

waste-related target initially set for fiscal 2010 (maximum finaldisposal amount of 169,000 tons) in fiscal 2000 (final disposalamount of 139,500 tons). Since the amount of final disposalhas continued to decrease thereafter, in fiscal 2006 its targetsetting was reviewed and the target amount of final disposalwas revised and a final disposal rate was established as a newtarget indicator. Thus, vigorous efforts are being made to con-trol waste generation.

Since fiscal 2006 the amount of final disposal by the SanyoGroup's domestic manufacturing facilities has been less than300 tons out of the total waste generation of approximately100,000 tons, which means that the industry's target for finaldisposal rate has already been reached. Currently, Sanyo isaiming to control its final disposal rate at the respective facili-ties to be under 0.5% while continuing to keep down the over-all final disposal rate of domestic manufacturing facilities.

Overall results for the domestic manufacturing sector in fiscal2007 were a total waste generation of approximately 90,000tons and final disposal amount of 160 tons, resulting in a finaldisposal rate of 0.18%. At the same time, as for the non-manufacturing sector where reduction of final disposal rate israther difficult due to the high general waste rate, researchlaboratories and the logistic division achieved a final disposalrate of under 0.5%.

To prevent its business activities from having serious impacton regional bio-diversity, the Sanyo Group addressesmanagement of chemical substances and protection of waterresources, and at the same time, makes constant efforts toprotect bio-diversity through preservation of forested areas,protection of rare creatures etc.

At the Hanyu Plant of Kanto Sanyo Semiconductors Co., Ltd.,a "Zero Water Discharge System" has been established torecycle water used in the production process for effective usein the plant. In addition, the plant has created a biotope spaceon the premises which is used to protect and cultivate aprotected species "Aldrovanda vesiculosa," known as thewaterwheel plant, by utilizing recycled water. Cultivated plantsare divided and given to neighboring elementary schools etc.for use as supplementary study material.

■ Proper Management of Chemical SubstancesThe Sanyo Group conducted a survey based on its original

chemical substance management system to find out howenvironment-polluting chemical substances are being releasedinto the environment from its domestic manufacturing facilitiesincluding subsidiaries. Based on the findings of the survey,Sanyo is shifting to alternative substances and planning andimplementing improvement of manufacturing processes andstrengthening of management to control the release of suchsubstances and reduce their environmental impact.

As for the items containing polychlorinated biphenyl (PCB)possessed by the Sanyo Group, such as power capacitors/transformers and capacitors recovered from some waste homeappliances and old light fittings, control managers are installedat the facilities to maintain strict control of them. At the sametime, a group-wide effort is being made to complete theirdisposal by 2016 as required by the law.

■ Reduction of Chemical Substance EmissionIn fiscal 2007, the emission of substances subject to PRTR*1

Law into the environment by Sanyo's domestic manufacturingfacilities was 42 tons, achieving a reduction of over 90%compared to fiscal 1999. The major emission control measurestaken include: (1) improving the processes (reduction ofconsumption of fluid chemicals etc.); (2) Substituting theapplicable chemical substances (switching from oil-basedcoating materials to water-based/powder coating materials);(3) recovering emissions to the maximum extent possible; and(4) installing harm removal devices.

Further, in accordance with the Air Pollution Control Law ofJapan, Sanyo surveys its domestic manufacturing facilities onemissions of VOC*2 into the atmosphere on an ongoing basisand takes necessary measures accordingly.

■ Pollution Risk Survey and Information DisclosureFrom the late 1990s, the Sanyo Group has systematically con-

ducted a survey on contamination of the premises of companyfacilities by organochlorine solvents and heavy metals and forthe premises of manufacturing facilities at which contaminationlevels higher than the environmental standard level werefound; reported these contamination levels to the relevantadministrative authorities; and taken measures to decontami-nate the corresponding sites and excavate/remove the con-taminated soil.In fiscal 2007, decontamination of company facilities' soil was

continuously done. In the future, appropriate information willbe disclosed on a timely basis.

■ Recycling of WaterOf the total water consumption by the Sanyo Group,

approximately 60% is the pure water used by the semiconduc-tor division for mainly silicon wafer cutting/grinding. Waterdischarged from this process is separated into silicon sludgeand water, and the separated water is purified for reuse asultrapure water and also reused as low-grade washing waterand cooling water. Thus, the entire Sanyo Group implementsmeasures to promote factory-wide comprehensive utilizationof water. However, water consumption in fiscal 2007 totaledapproximately 22.06 million m3, which is unfortunately 1.42million m3 more compared to the previous year. Expansion ofproduction has led to an overall increase in water consumptionand in particular the component business area including thesemiconductor busi-ness showed a highincrease.

Silicon recoveredfrom silicon sludge isreutilized as a deoxi-d i z e r i n s t e a d o fbeing disposed of ina landfill.

*1 PRTR (Pollutant Release and Transfer Register) is a system to collect data,make reports, and disclose information on sources and quantities ofharmful chemical substances released to the environment or transferredoff-site in the form of waste.

*2 VOC (Volatile Organic Compounds): Organic compounds that easilyevaporate at room temperature, including ethanol, acetone, isopropylalcohol, toluene, and xylene.* Non-groundwater is mainly industrial water and tap water, including water

drawn from rivers and lakes.* Groundwater is mainly well water, which is used in areas with abundant

groundwater, such as at the foot of a mountain.* The survey scope covers ISO14001-certified bases among all manufacturing

bases worldwide. (A certain grace period is granted for some bases, such asnew companies which have recently been ISO14001 certified.)

Blossoming waterwheel plants (Aldrovanda vesiculosa)

Pure silicon paste to be used as a deoxidizer (PSiP)

Proper Management of ChemicalSubstances and Emission Reduction

Controlling Waste Generationand Recycling Resources

Preserving Bio-diversity


CFC Control MeasuresPRTR Survey Reports, Countermeasures toSoil/Groundwater Problems



Amount of PRTR substances used

Amount released into environment

Amount transferred

Amount consumed as product

Amount removed

Amount recycled

FY 2006

14,952

44

246

14,057

58

547

FY 2007

14,774

42

208

13,829

85

611

【PRTR survey results (Manufacturing facilities in Japan)】

Indicator

Amount of finaldisposal

Final disposal rate

FY 2006 Results

34,000 tons

1.6%

FY 2010 Target (Before review)

Not more than 169,000 tons

－

FY 2010 Target (After review)

Not more than 46,000 tons(89% less than FY 1990)

Not more than 2%

【Targets for Waste Generation by Electric/Electronic Industry】

0

20,000

40,000

60,000

80,000

100,000

（t）120,000

2006 200720052004

112,826102,274 101,023

90,390

1,749

1.04

0.53

0.260.18

545 265 1600.0

0.5

1.0

1.5

（%）2.0

Total waste generatedAmount of final disposal

Final disposal rate

（Fiscal year）

【Amount of waste discharged and final disposal rate(Domestic facilities of the Sanyo Group)】

【Changes in Water Consumption】

0

500

1,500

1,000

2,000Overseas non-ground waterDomestic non-ground water

20072006200520042003

1,843

400

1,499

376

1,473

1,1651,302

501

374

401

Overseas ground waterDomestic groundwater

～～

196

355414

459

3931 3 18 29

（Unit:t）

314

（Fiscal year）

（10,000m3）


■ Controlling Waste GenerationThe Japanese electric/electronic industry group reached its

waste-related target initially set for fiscal 2010 (maximum finaldisposal amount of 169,000 tons) in fiscal 2000 (final disposalamount of 139,500 tons). Since the amount of final disposalhas continued to decrease thereafter, in fiscal 2006 its targetsetting was reviewed and the target amount of final disposalwas revised and a final disposal rate was established as a newtarget indicator. Thus, vigorous efforts are being made to con-trol waste generation.

Since fiscal 2006 the amount of final disposal by the SanyoGroup's domestic manufacturing facilities has been less than300 tons out of the total waste generation of approximately100,000 tons, which means that the industry's target for finaldisposal rate has already been reached. Currently, Sanyo isaiming to control its final disposal rate at the respective facili-ties to be under 0.5% while continuing to keep down the over-all final disposal rate of domestic manufacturing facilities.

Overall results for the domestic manufacturing sector in fiscal2007 were a total waste generation of approximately 90,000tons and final disposal amount of 160 tons, resulting in a finaldisposal rate of 0.18%. At the same time, as for the non-manufacturing sector where reduction of final disposal rate israther difficult due to the high general waste rate, researchlaboratories and the logistic division achieved a final disposalrate of under 0.5%.

To prevent its business activities from having serious impacton regional bio-diversity, the Sanyo Group addressesmanagement of chemical substances and protection of waterresources, and at the same time, makes constant efforts toprotect bio-diversity through preservation of forested areas,protection of rare creatures etc.

At the Hanyu Plant of Kanto Sanyo Semiconductors Co., Ltd.,a "Zero Water Discharge System" has been established torecycle water used in the production process for effective usein the plant. In addition, the plant has created a biotope spaceon the premises which is used to protect and cultivate aprotected species "Aldrovanda vesiculosa," known as thewaterwheel plant, by utilizing recycled water. Cultivated plantsare divided and given to neighboring elementary schools etc.for use as supplementary study material.

■ Proper Management of Chemical SubstancesThe Sanyo Group conducted a survey based on its original

chemical substance management system to find out howenvironment-polluting chemical substances are being releasedinto the environment from its domestic manufacturing facilitiesincluding subsidiaries. Based on the findings of the survey,Sanyo is shifting to alternative substances and planning andimplementing improvement of manufacturing processes andstrengthening of management to control the release of suchsubstances and reduce their environmental impact.

As for the items containing polychlorinated biphenyl (PCB)possessed by the Sanyo Group, such as power capacitors/transformers and capacitors recovered from some waste homeappliances and old light fittings, control managers are installedat the facilities to maintain strict control of them. At the sametime, a group-wide effort is being made to complete theirdisposal by 2016 as required by the law.

■ Reduction of Chemical Substance EmissionIn fiscal 2007, the emission of substances subject to PRTR*1

Law into the environment by Sanyo's domestic manufacturingfacilities was 42 tons, achieving a reduction of over 90%compared to fiscal 1999. The major emission control measurestaken include: (1) improving the processes (reduction ofconsumption of fluid chemicals etc.); (2) Substituting theapplicable chemical substances (switching from oil-basedcoating materials to water-based/powder coating materials);(3) recovering emissions to the maximum extent possible; and(4) installing harm removal devices.

Further, in accordance with the Air Pollution Control Law ofJapan, Sanyo surveys its domestic manufacturing facilities onemissions of VOC*2 into the atmosphere on an ongoing basisand takes necessary measures accordingly.

■ Pollution Risk Survey and Information DisclosureFrom the late 1990s, the Sanyo Group has systematically con-

ducted a survey on contamination of the premises of companyfacilities by organochlorine solvents and heavy metals and forthe premises of manufacturing facilities at which contaminationlevels higher than the environmental standard level werefound; reported these contamination levels to the relevantadministrative authorities; and taken measures to decontami-nate the corresponding sites and excavate/remove the con-taminated soil.In fiscal 2007, decontamination of company facilities' soil was

continuously done. In the future, appropriate information willbe disclosed on a timely basis.

■ Recycling of WaterOf the total water consumption by the Sanyo Group,

approximately 60% is the pure water used by the semiconduc-tor division for mainly silicon wafer cutting/grinding. Waterdischarged from this process is separated into silicon sludgeand water, and the separated water is purified for reuse asultrapure water and also reused as low-grade washing waterand cooling water. Thus, the entire Sanyo Group implementsmeasures to promote factory-wide comprehensive utilizationof water. However, water consumption in fiscal 2007 totaledapproximately 22.06 million m3, which is unfortunately 1.42million m3 more compared to the previous year. Expansion ofproduction has led to an overall increase in water consumptionand in particular the component business area including thesemiconductor busi-ness showed a highincrease.

Silicon recoveredfrom silicon sludge isreutilized as a deoxi-d i z e r i n s t e a d o fbeing disposed of ina landfill.

*1 PRTR (Pollutant Release and Transfer Register) is a system to collect data,make reports, and disclose information on sources and quantities ofharmful chemical substances released to the environment or transferredoff-site in the form of waste.

*2 VOC (Volatile Organic Compounds): Organic compounds that easilyevaporate at room temperature, including ethanol, acetone, isopropylalcohol, toluene, and xylene.* Non-groundwater is mainly industrial water and tap water, including water

drawn from rivers and lakes.* Groundwater is mainly well water, which is used in areas with abundant

groundwater, such as at the foot of a mountain.* The survey scope covers ISO14001-certified bases among all manufacturing

bases worldwide. (A certain grace period is granted for some bases, such asnew companies which have recently been ISO14001 certified.)

Blossoming waterwheel plants (Aldrovanda vesiculosa)

Pure silicon paste to be used as a deoxidizer (PSiP)

Proper Management of ChemicalSubstances and Emission Reduction

Controlling Waste Generationand Recycling Resources

Preserving Bio-diversity


CFC Control MeasuresPRTR Survey Reports, Countermeasures toSoil/Groundwater Problems



Item

1. Pollution prevention

2. Global environmental conservation

3. Resource circulation

4. Upstream/Downstream

5. Administration

6. R&D

7. Social activities

8. Environmental remediation

Investment

828

638

360

60

66

2,568

4

35

4,560

850

1,317

263

23

275

6,323

9,051

Expense

2,834

1,836

2,549

447

2,417

14,236

280

291

24,889

Main activities

Installation of exhaust gas treatment facilities and maintenance of wastewater plant

Maintenance of cogeneration system

Expense for waste disposal

Outsourcing of recycling

Maintenance and operation of environmental management systems

Research and development of environmentally-conscious products

Expense for activities in Solar Ark

Groundwater purification

Total

(1) Energy conservation

(2) Resource conservation

(3) Reduction in waste disposal cost

(4) Income from used paper collection

(5) Environment-related business activities

(6) Profit from selling valuables related to waste disposal and recycling

Introduction of electricity saving equipment

Reduction of chemical usage

Reduction of emission of industrial waste

Sales of used paper

Environmental analysis

Profits on sale of scrap

Total

Item Cost effectMain activities

Directeffect


To promote environmental conservation activities efficientlyand effectively, the Sanyo Group introduced environmentalaccounting in fiscal 1998 as part of its environmental manage-

■ Status of ISO14001 CertificationAs of the end of March 2008, the number of ISO14001

certifications obtained group-wide is 68*1 and a total of 103companies, 51 in Japan and 52 overseas, have been registeredwithin the Sanyo Group.

■ Compliance with Environmental Laws and RegulationsEach sub-site ensures that information on all new environmental

laws and regulations, as well as amendments to existing ones isobtained and communicated within the organization without fail,and does thorough and regular monitoring and checking. SanyoGroup also endeavors to observe other requirements to which theGroup has subscribed, such as an agreement amongst industrygroups. In addition, the Sanyo Group not only observes regionalenvironmental ordinances of prefectural and municipal govern-ments, but also sets voluntary standards higher than those of theordinances to prevent any deviation from regulation values.

For fiscal 2007, though there was no negative impact on theenvironment, one case of failing to comply related to legalformalities occurred, for which instructions and cautions werereceived from administrative authorities. Following this case,the importance of compliance was thoroughly communicatedand reconfirmed throughout the Group.

In addition, several cases of temporary deviation fromair/water quality-related standards occurred. For these cases,cause investigations were conducted promptly and correctivemeasures were implemented accordingly.

■ Continual Improvement through External　 and Reciprocal In-house Checks

The ISO14001-certified facilities undergo assessment by anexternal body every year and each sub-site conducts internalenvironmental audits on a regular basis.

For GEMS overall, a "Group Environmental Audit" isconducted every year, where the group environmental auditorsselected from each sub-site audit the activities of other sub-sites to verify the conformity with the requirements and theeffectiveness of the internal environmental audit. The GroupEnvironmental Audit enables sub-sites to share their cases ofsuccessful activities and achievements within the Group andthus contributes to the improvement of the operation of GEMS.

Through the Group Environmental Audit for fiscal 2007, 43findings were identified (11 minor nonconformities and 32 casesrequiring observation), which are more than the 34 cases last fiscalyear. The reason for the increase in the number of identifiednonconformities is that from the aspect of compliance emphasis,new nonconformity items were added in "Legal and otherrequirements" and "Evaluation of compliance" and evaluation wasmade in a stricter manner. Through making steady improvementin the areas where nonconformity has been identified, environ-mental management has been further intensified. As a result ofefforts made, all sub-sites received an "Improved" evaluation inthe audit by external body.

■ Environmental Education/Training for All EmployeesSanyo provides various educational opportunities on a regu-

lar basis to increase awareness of the need for environmentalconservation and provide relevant knowledge for all employ-ees within the scope of GEMS (approximately 29,000, includ-ing subcontractors working within the premises of the SanyoGroup).In particular, employees who are involved in operations which

may have significant impact on the environment, such as han-dling of boilers, incineration systems and chemicals, and thosein charge of environmental laws and regulations are subject tospecialized education and training and if necessary externaltraining courses to prevent emergency situations and acci-dents from occurring.

For the associated companies that are independently ISO-certified, environmental education is provided based on therequirements by the corresponding standards. Further, for thepurpose of training internal auditors crucial to the operation ofthe environmental management system, internal auditor train-ing is conducted in-house on a regular basis.

■ Environmental Conservation CostThe environmental conservation cost for fiscal 2007 was com-

prised of 24,889 million yen in expenses and 4,560 million yenin investment. Compared with fiscal 2006, the expenseamount was increased by 13% while the investment amountwas reduced by 16%.

The increase in expenses is mainly attributable to an increasein R&D cost resulting from expansion of the solar division andenvironmentally-conscious product development. In addition,

■ Environmental Conservation EffectsThe direct environmental conservation effects for fiscal 2007

decreased by 18% compared with fiscal 2006 to 9,051 millionyen. This decrease is mainly due to the fact that the level ofreduction of material consumption did not stay at the samelevel as in the previous fiscal year, which had a negative impact

In transforming into a "leading provider of Environment- andEnergy-related products," the Sanyo Group is promoting group-wide environmental management to ensure a sound global envi-ronment while realizing a prosperous and secure society.

*1 In terms of the number of companies, SANYO Electric Co., Ltd. and its 102subsidiaries have been certified. Some sites consist of two or moreassociated companies, and some facilities of a company are registered asone site on its own. Therefore, the number of registrations and the numberof certified companies are not the same. In the case of GEMS, the majorfacilities of SANYO Electric Co., Ltd. (internal companies) and 42 domesticassociated companies together comprise one integrated body, which isregistered as one ISO14001-certified site.

Environmental education/training

【Environmental conservation cost】（million yen）

【Environmental conservation effects】（million yen）

due to an increase in the number of business locationsincluded in the calculation, there was an increase in resourcecirculation cost. The reduction of investment amount is mainlydue to the fact that there was higher than average investmentfor the development of environmentally-conscious products inthe previous year. The investment amount for fiscal 2007 wasthe ordinary year average.

Calculation Method for Fiscal 20071. Environmental conservation costs (based on the Environmental Accounting Guidelines by the Ministry of the Environment)

Investment amount: amount of expenditure intended for environmental conservationExpense: costs of labor intended for environmental conservation and depreciation expenses related to investments in environmental conservation

2. Environmental conservation effectsDirect effects: the effects which have direct impact on the environment and which can be converted directly into a monetary sum

3. Environmental conservation indicators: calculation of environmental conservation achievements that are thought to have significant effect on the environment4. Period of survey: April 2007 to March 20085. Scope of survey: 98 domestic and overseas related companies of the

Sanyo Group with ISO14001 certification (47 companies in Japanand 51 overseas)

on the resource conservation effect. On the other hand, therewas an increase in profit from selling valuables related towaste disposal and recycling due to higher market price of rawmaterials and an increase in amount sold as a result ofproduction growth.

ment. Through practicing it, Sanyo uniformly manages its envi-ronmental conservation activity performance to help improveactivity contents and efficiency.

With a view to promoting environmental management on aGroup-wide basis, the Sanyo Group established the GroupEnvironmental Management System (GEMS) to be the core ofits environmental management in which major sites and salesbases as part of the domestic business divisions (internalcompanies, subsidiaries etc.) are integrated into one body toobtain ISO14001 certification. Under this system, each divisionin the integrated body is called a sub-site. Through thissystem, Sanyo ensures that the Sanyo Electric GroupEnvironmental Policies will be fully observed, while expeditingthe dec i s ion-mak ing process and promot ing theEnvironmental Action Plan.

Environmental AccountingEnvironmental Management System

Environmental Management, Environmental Accounting→　www.sanyo.com/environment/en/env/

access



Item

1. Pollution prevention

2. Global environmental conservation

3. Resource circulation

4. Upstream/Downstream

5. Administration

6. R&D

7. Social activities

8. Environmental remediation

Investment

828

638

360

60

66

2,568

4

35

4,560

850

1,317

263

23

275

6,323

9,051

Expense

2,834

1,836

2,549

447

2,417

14,236

280

291

24,889

Main activities

Installation of exhaust gas treatment facilities and maintenance of wastewater plant

Maintenance of cogeneration system

Expense for waste disposal

Outsourcing of recycling

Maintenance and operation of environmental management systems

Research and development of environmentally-conscious products

Expense for activities in Solar Ark

Groundwater purification

Total

(1) Energy conservation

(2) Resource conservation

(3) Reduction in waste disposal cost

(4) Income from used paper collection

(5) Environment-related business activities

(6) Profit from selling valuables related to waste disposal and recycling

Introduction of electricity saving equipment

Reduction of chemical usage

Reduction of emission of industrial waste

Sales of used paper

Environmental analysis

Profits on sale of scrap

Total

Item Cost effectMain activities

Directeffect


To promote environmental conservation activities efficientlyand effectively, the Sanyo Group introduced environmentalaccounting in fiscal 1998 as part of its environmental manage-

■ Status of ISO14001 CertificationAs of the end of March 2008, the number of ISO14001

certifications obtained group-wide is 68*1 and a total of 103companies, 51 in Japan and 52 overseas, have been registeredwithin the Sanyo Group.

■ Compliance with Environmental Laws and RegulationsEach sub-site ensures that information on all new environmental

laws and regulations, as well as amendments to existing ones isobtained and communicated within the organization without fail,and does thorough and regular monitoring and checking. SanyoGroup also endeavors to observe other requirements to which theGroup has subscribed, such as an agreement amongst industrygroups. In addition, the Sanyo Group not only observes regionalenvironmental ordinances of prefectural and municipal govern-ments, but also sets voluntary standards higher than those of theordinances to prevent any deviation from regulation values.

For fiscal 2007, though there was no negative impact on theenvironment, one case of failing to comply related to legalformalities occurred, for which instructions and cautions werereceived from administrative authorities. Following this case,the importance of compliance was thoroughly communicatedand reconfirmed throughout the Group.

In addition, several cases of temporary deviation fromair/water quality-related standards occurred. For these cases,cause investigations were conducted promptly and correctivemeasures were implemented accordingly.

■ Continual Improvement through External　 and Reciprocal In-house Checks

The ISO14001-certified facilities undergo assessment by anexternal body every year and each sub-site conducts internalenvironmental audits on a regular basis.

For GEMS overall, a "Group Environmental Audit" isconducted every year, where the group environmental auditorsselected from each sub-site audit the activities of other sub-sites to verify the conformity with the requirements and theeffectiveness of the internal environmental audit. The GroupEnvironmental Audit enables sub-sites to share their cases ofsuccessful activities and achievements within the Group andthus contributes to the improvement of the operation of GEMS.

Through the Group Environmental Audit for fiscal 2007, 43findings were identified (11 minor nonconformities and 32 casesrequiring observation), which are more than the 34 cases last fiscalyear. The reason for the increase in the number of identifiednonconformities is that from the aspect of compliance emphasis,new nonconformity items were added in "Legal and otherrequirements" and "Evaluation of compliance" and evaluation wasmade in a stricter manner. Through making steady improvementin the areas where nonconformity has been identified, environ-mental management has been further intensified. As a result ofefforts made, all sub-sites received an "Improved" evaluation inthe audit by external body.

■ Environmental Education/Training for All EmployeesSanyo provides various educational opportunities on a regu-

lar basis to increase awareness of the need for environmentalconservation and provide relevant knowledge for all employ-ees within the scope of GEMS (approximately 29,000, includ-ing subcontractors working within the premises of the SanyoGroup).In particular, employees who are involved in operations which

may have significant impact on the environment, such as han-dling of boilers, incineration systems and chemicals, and thosein charge of environmental laws and regulations are subject tospecialized education and training and if necessary externaltraining courses to prevent emergency situations and acci-dents from occurring.

For the associated companies that are independently ISO-certified, environmental education is provided based on therequirements by the corresponding standards. Further, for thepurpose of training internal auditors crucial to the operation ofthe environmental management system, internal auditor train-ing is conducted in-house on a regular basis.

■ Environmental Conservation CostThe environmental conservation cost for fiscal 2007 was com-

prised of 24,889 million yen in expenses and 4,560 million yenin investment. Compared with fiscal 2006, the expenseamount was increased by 13% while the investment amountwas reduced by 16%.

The increase in expenses is mainly attributable to an increasein R&D cost resulting from expansion of the solar division andenvironmentally-conscious product development. In addition,

■ Environmental Conservation EffectsThe direct environmental conservation effects for fiscal 2007

decreased by 18% compared with fiscal 2006 to 9,051 millionyen. This decrease is mainly due to the fact that the level ofreduction of material consumption did not stay at the samelevel as in the previous fiscal year, which had a negative impact

In transforming into a "leading provider of Environment- andEnergy-related products," the Sanyo Group is promoting group-wide environmental management to ensure a sound global envi-ronment while realizing a prosperous and secure society.

*1 In terms of the number of companies, SANYO Electric Co., Ltd. and its 102subsidiaries have been certified. Some sites consist of two or moreassociated companies, and some facilities of a company are registered asone site on its own. Therefore, the number of registrations and the numberof certified companies are not the same. In the case of GEMS, the majorfacilities of SANYO Electric Co., Ltd. (internal companies) and 42 domesticassociated companies together comprise one integrated body, which isregistered as one ISO14001-certified site.

Environmental education/training

【Environmental conservation cost】（million yen）

【Environmental conservation effects】（million yen）

due to an increase in the number of business locationsincluded in the calculation, there was an increase in resourcecirculation cost. The reduction of investment amount is mainlydue to the fact that there was higher than average investmentfor the development of environmentally-conscious products inthe previous year. The investment amount for fiscal 2007 wasthe ordinary year average.

Calculation Method for Fiscal 20071. Environmental conservation costs (based on the Environmental Accounting Guidelines by the Ministry of the Environment)

Investment amount: amount of expenditure intended for environmental conservationExpense: costs of labor intended for environmental conservation and depreciation expenses related to investments in environmental conservation

2. Environmental conservation effectsDirect effects: the effects which have direct impact on the environment and which can be converted directly into a monetary sum

3. Environmental conservation indicators: calculation of environmental conservation achievements that are thought to have significant effect on the environment4. Period of survey: April 2007 to March 20085. Scope of survey: 98 domestic and overseas related companies of the

Sanyo Group with ISO14001 certification (47 companies in Japanand 51 overseas)

on the resource conservation effect. On the other hand, therewas an increase in profit from selling valuables related towaste disposal and recycling due to higher market price of rawmaterials and an increase in amount sold as a result ofproduction growth.

ment. Through practicing it, Sanyo uniformly manages its envi-ronmental conservation activity performance to help improveactivity contents and efficiency.

With a view to promoting environmental management on aGroup-wide basis, the Sanyo Group established the GroupEnvironmental Management System (GEMS) to be the core ofits environmental management in which major sites and salesbases as part of the domestic business divisions (internalcompanies, subsidiaries etc.) are integrated into one body toobtain ISO14001 certification. Under this system, each divisionin the integrated body is called a sub-site. Through thissystem, Sanyo ensures that the Sanyo Electric GroupEnvironmental Policies will be fully observed, while expeditingthe dec i s ion-mak ing process and promot ing theEnvironmental Action Plan.

Environmental AccountingEnvironmental Management System

Environmental Management, Environmental Accounting→　www.sanyo.com/environment/en/env/

access



TOPICS Thorough training on mattersrelating to revised laws

(2) Pre-sales service●Consultation with　customers●Advertisements,　etc.

(3) After-salesservice●Repair●Regular maintenance,　etc.

(1) Products●Standard quality　(no defects, etc.)●Attractive quality　(added value, etc.)

【Product business process and quality management measures】

General CS

Specific CS

(4) Social aspectsBrand reliability, corporate ethics, environmental measures, and social contribution

VDR: Virtual design review (design quality improvement using 3D CAD databefore trial production)

DR: Design review (design inspection)SME activities: Sanyo Group production improvement activitiesQMS: Quality Management System

QMS auditing / feedback

Six Sigma activities

DR planning SME activities DR planning

Quality risk managementInitial-periodflowmanagementProduct inspectionVDR planning

After-salesservice

Massproduction

Trialproduction

Detaileddesign

Conceptualdesign

Productplanning

■ Improving management quality,the foundation of customer satisfaction

In order to achieve the satisfaction of diverse customers andthe greater society, Sanyo needs to improve its overall man-agement quality in addition to product and service quality. Theonly way to do this is to continue producing results forcustomer, employee, social, and financial value. Based on thisknowledge, the Sanyo Group has indicated its fundamentalcriteria for overall management quality in its Basic Standard forManagement Quality, and has established the Basic Policy forManagement Quality Improvement, along with the Basic Policyfor Commercial Product Quality and Customer Service.

As a tool to raise the quality of overall management, theSanyo Group has incorporated an approach from the programfor management quality improvement endorsed by the JapanQuality Award (JQA)*1. Consequently, Sanyo is working tocreate an organization and corporate climate where manage-ment structures promote self-evaluation and continualrenewal.

■ Improving quality, the basis of　 customer satisfaction

In the manufacturing business, product quality is the mostfundamental element of customer satisfaction. The SanyoGroup’s concept of product quality includes not just thesafety, reliability, usability, and basic performance of the prod-ucts themselves, but also the quality of service before andafter sales, which covers the provision of product informationand the explanation of usage methods.

The group devises and implements various initiatives in orderto further increase product quality from the customer’sperspective.

At the quality assurance departments of the head office andvarious divisions, the Sanyo Group carries out multifacetedinspections of the products that it manufactures and sells,according to inspection standards and methods devised foreach product category. The inspection standards includelegally required standards, Sanyo’s own standards relating tosafety and performance, and criteria based on customerperspectives. Products that have some items identified byinspectors during the inspection that they do not meet all therequirements are subject to strict measures for improvementconfirmation and shipment determination. In fiscal 2007, prod-uct inspection was carried out for 36 models. All items identi-fied were resolved through reliable measures, and productimprovements were made.

■ Evaluation of product safetyIn order to provide customers with safe and reliable prod-

ucts, the Sanyo Group has prepared and implemented its ownproduct safety standards in Japanese, Chinese, and Englishthat surpass the stringent standards established by law andexternal agencies.

In fiscal 2007, Sanyo revised its standards for still greaterproduct safety, and made its testing conditions even clearer,while expanding the reference cases for possible product acci-dents. A checklist was also prepared to ensure that the stan-dards are strictly followed. Moreover, in order to evaluate andverify safety through actual testing, the Product Safety TestLab located at Sanyo’s Tokyo Plant actually burns productsand components, and shares the results with each operatingdivision for use in product development and design. We alsoutilize as an objective evaluation Minister Awards that theJapanese Ministry of Economy, Trade and Industry begangiving to companies in fiscal 2007 that have contributed toproduct safety in order to verify and improve our safety crite-ria. Though Sanyo did not receive an award in fiscal 2007,improvement measures are being implemented in order toaddress the weaknesses that have been discovered.

■ Promoting quality-related trainingThe basis of quality improvement lies in quality management

training for employees. The Sanyo Group has adopted the ”SixSigma” method as one way to improve quality, and carries outemployee training using this technique. Six Sigma is based onscientific statistical analysis, and involves investigating thecause of problems that occur in the manufacturing processalong with measures to deal with them, in order to reduceprocess defect rates and improve quality. Each division isobtaining good results with this method.

Together with CustomersThe Sanyo Group provides a wide range of products from homeappliances, to electronic components, to industrial equipment. Weseek to improve customer satisfaction through ongoing dialog, whileplacing priority on the quality and safety of products and service.

Since its foundation, Sanyo has remained committed toachieving high customer satisfaction (CS) in its business activi-ties. A Customer-First principle is explicitly expressed in themanagement philosophy and principles of conduct. Everyexecutive and employee of the Sanyo Group keeps this prin-ciple in mind at all times, and strives to ensure that day-to-dayactivities lead to greater customer satisfaction.

The goal is to always ensure customer satisfaction (CS) atevery stage, from the time that a customer is investigating apurchase, to the after-sales stage of repair and maintenance,and finally to the product disposal stage. Sanyo strives toimprove all aspects of CS in inventive and imaginative ways,through coordination of all divisions including planning, tech-nology, design, manufacturing, and quality control, as well asthe sales and service divisions that have direct contact withcustomers.

【Elements of customer satisfaction (CS)】

*1. The Japan Quality Award was established by the Japan ProductivityCenter for Socio-Economic Development. The awards are given tooutstanding organizations and companies that use assessment standardsincorporating new management approaches that keep pace with thechanging times.

●Realize management with excellence to win theregard of customers and society

●With the aim of bringing about greater customersatisfaction, manage by giving ‘quality’ first priority

●Always put yourself in the position of custom-ers and put customer satisfaction first●What we truly aim at is customers’ hearts and

therefore provide that will stay in customers’hearts

Based on a brand vision of Think GAIA, and amanagement philosophy that states, “We arecommitted to becoming an indispensable element inthe lives of people all over the world,” the SanyoGroup has established the Basic Policy for Manage-ment Quality Improvement in order to become anorganization capable of continuously creating newvalues to satisfy customers.

This policy was established in order to realizequality improvement for outstanding productsand services, and to offer useful and safe prod-ucts that satisfy customers.

Basic Policy forManagement QualityImprovement

Basic Policy forCommercialProduct Quality

Basic Policy forCustomer Service

In fiscal 2007, Sanyo held 31 employee briefings in orderto explain the details of a revision to the Japanese Con-sumer Product Safety Law, and measures to deal with thechanges. Internal briefings were also held regarding a revi-sion of a product labeling agreement that serves as theindustry rules based on the Act against Unjustifiable Premi-ums and Misleading Representations. As a result, legalcompliance was ensured.

●A total of 616 employees participated in training relating to revised laws such as theConsumer Product Safety Law in Japan

●Customers urged to inspect their Sanyo heaters just before winter●Began e-LIFE Research in order to gather feedback from a wide range of customers

Highlights

Improving Customer Satisfaction Aiming for higher quality

Tender Loving Care and Appliance safety Tips→　www.sanyo.co.jp/cs/aijoutenken/(Japanese Only)Inquiries and Customer Service Support→　www.sanyo.co.jp/cs/(Japanese Only)Publicity and Advertising. Universal Design→　www.sanyo.com/environment/en/society/

access



TOPICS Thorough training on mattersrelating to revised laws

(2) Pre-sales service●Consultation with　customers●Advertisements,　etc.

(3) After-salesservice●Repair●Regular maintenance,　etc.

(1) Products●Standard quality　(no defects, etc.)●Attractive quality　(added value, etc.)

【Product business process and quality management measures】

General CS

Specific CS

(4) Social aspectsBrand reliability, corporate ethics, environmental measures, and social contribution

VDR: Virtual design review (design quality improvement using 3D CAD databefore trial production)

DR: Design review (design inspection)SME activities: Sanyo Group production improvement activitiesQMS: Quality Management System

QMS auditing / feedback

Six Sigma activities

DR planning SME activities DR planning

Quality risk managementInitial-periodflowmanagementProduct inspectionVDR planning

After-salesservice

Massproduction

Trialproduction

Detaileddesign

Conceptualdesign

Productplanning

■ Improving management quality,the foundation of customer satisfaction

In order to achieve the satisfaction of diverse customers andthe greater society, Sanyo needs to improve its overall man-agement quality in addition to product and service quality. Theonly way to do this is to continue producing results forcustomer, employee, social, and financial value. Based on thisknowledge, the Sanyo Group has indicated its fundamentalcriteria for overall management quality in its Basic Standard forManagement Quality, and has established the Basic Policy forManagement Quality Improvement, along with the Basic Policyfor Commercial Product Quality and Customer Service.

As a tool to raise the quality of overall management, theSanyo Group has incorporated an approach from the programfor management quality improvement endorsed by the JapanQuality Award (JQA)*1. Consequently, Sanyo is working tocreate an organization and corporate climate where manage-ment structures promote self-evaluation and continualrenewal.

■ Improving quality, the basis of　 customer satisfaction

In the manufacturing business, product quality is the mostfundamental element of customer satisfaction. The SanyoGroup’s concept of product quality includes not just thesafety, reliability, usability, and basic performance of the prod-ucts themselves, but also the quality of service before andafter sales, which covers the provision of product informationand the explanation of usage methods.

The group devises and implements various initiatives in orderto further increase product quality from the customer’sperspective.

At the quality assurance departments of the head office andvarious divisions, the Sanyo Group carries out multifacetedinspections of the products that it manufactures and sells,according to inspection standards and methods devised foreach product category. The inspection standards includelegally required standards, Sanyo’s own standards relating tosafety and performance, and criteria based on customerperspectives. Products that have some items identified byinspectors during the inspection that they do not meet all therequirements are subject to strict measures for improvementconfirmation and shipment determination. In fiscal 2007, prod-uct inspection was carried out for 36 models. All items identi-fied were resolved through reliable measures, and productimprovements were made.

■ Evaluation of product safetyIn order to provide customers with safe and reliable prod-

ucts, the Sanyo Group has prepared and implemented its ownproduct safety standards in Japanese, Chinese, and Englishthat surpass the stringent standards established by law andexternal agencies.

In fiscal 2007, Sanyo revised its standards for still greaterproduct safety, and made its testing conditions even clearer,while expanding the reference cases for possible product acci-dents. A checklist was also prepared to ensure that the stan-dards are strictly followed. Moreover, in order to evaluate andverify safety through actual testing, the Product Safety TestLab located at Sanyo’s Tokyo Plant actually burns productsand components, and shares the results with each operatingdivision for use in product development and design. We alsoutilize as an objective evaluation Minister Awards that theJapanese Ministry of Economy, Trade and Industry begangiving to companies in fiscal 2007 that have contributed toproduct safety in order to verify and improve our safety crite-ria. Though Sanyo did not receive an award in fiscal 2007,improvement measures are being implemented in order toaddress the weaknesses that have been discovered.

■ Promoting quality-related trainingThe basis of quality improvement lies in quality management

training for employees. The Sanyo Group has adopted the ”SixSigma” method as one way to improve quality, and carries outemployee training using this technique. Six Sigma is based onscientific statistical analysis, and involves investigating thecause of problems that occur in the manufacturing processalong with measures to deal with them, in order to reduceprocess defect rates and improve quality. Each division isobtaining good results with this method.

Together with CustomersThe Sanyo Group provides a wide range of products from homeappliances, to electronic components, to industrial equipment. Weseek to improve customer satisfaction through ongoing dialog, whileplacing priority on the quality and safety of products and service.

Since its foundation, Sanyo has remained committed toachieving high customer satisfaction (CS) in its business activi-ties. A Customer-First principle is explicitly expressed in themanagement philosophy and principles of conduct. Everyexecutive and employee of the Sanyo Group keeps this prin-ciple in mind at all times, and strives to ensure that day-to-dayactivities lead to greater customer satisfaction.

The goal is to always ensure customer satisfaction (CS) atevery stage, from the time that a customer is investigating apurchase, to the after-sales stage of repair and maintenance,and finally to the product disposal stage. Sanyo strives toimprove all aspects of CS in inventive and imaginative ways,through coordination of all divisions including planning, tech-nology, design, manufacturing, and quality control, as well asthe sales and service divisions that have direct contact withcustomers.

【Elements of customer satisfaction (CS)】

*1. The Japan Quality Award was established by the Japan ProductivityCenter for Socio-Economic Development. The awards are given tooutstanding organizations and companies that use assessment standardsincorporating new management approaches that keep pace with thechanging times.

●Realize management with excellence to win theregard of customers and society

●With the aim of bringing about greater customersatisfaction, manage by giving ‘quality’ first priority

●Always put yourself in the position of custom-ers and put customer satisfaction first●What we truly aim at is customers’ hearts and

therefore provide that will stay in customers’hearts

Based on a brand vision of Think GAIA, and amanagement philosophy that states, “We arecommitted to becoming an indispensable element inthe lives of people all over the world,” the SanyoGroup has established the Basic Policy for Manage-ment Quality Improvement in order to become anorganization capable of continuously creating newvalues to satisfy customers.

This policy was established in order to realizequality improvement for outstanding productsand services, and to offer useful and safe prod-ucts that satisfy customers.

Basic Policy forManagement QualityImprovement

Basic Policy forCommercialProduct Quality

Basic Policy forCustomer Service

In fiscal 2007, Sanyo held 31 employee briefings in orderto explain the details of a revision to the Japanese Con-sumer Product Safety Law, and measures to deal with thechanges. Internal briefings were also held regarding a revi-sion of a product labeling agreement that serves as theindustry rules based on the Act against Unjustifiable Premi-ums and Misleading Representations. As a result, legalcompliance was ensured.

●A total of 616 employees participated in training relating to revised laws such as theConsumer Product Safety Law in Japan

●Customers urged to inspect their Sanyo heaters just before winter●Began e-LIFE Research in order to gather feedback from a wide range of customers

Highlights

Improving Customer Satisfaction Aiming for higher quality

Tender Loving Care and Appliance safety Tips→　www.sanyo.co.jp/cs/aijoutenken/(Japanese Only)Inquiries and Customer Service Support→　www.sanyo.co.jp/cs/(Japanese Only)Publicity and Advertising. Universal Design→　www.sanyo.com/environment/en/society/

access



TOPICS Gathering opinions frommore customers: e-LIFE RESEARCH

TOPICS Customers urged to inspect theirheaters just before winter

【Customer information flow and feedback】

Customer Opinion Review Meeting

Providing rapidand

reliable support

Rapid andaccurateresponse Reflecting customer

opinions in productdevelopment and

improvement

Customers

Requestsand

consultation

After-sales service andmaintenance division Customer Center

CS InformationSystem database

Relevant divisionsoutside Japan

Topmanagement

Relevant divisionsin JapanRepair

92,614 calls（21.5%）

Purchasing93,359 calls（21.6%）

Other inquiries18,629 calls（4.3%）

Product usage227,338 calls（52.6%）

Total431,940

calls

Customer OpinionReview Meeting

Sanyo’s “Tender Loving Care and Appliance Safety Tips”(Website in Japanese)

Customer CenterThe Sanyo Customer Center receives over 400,000 calls

annually. In order to respond quickly and accurately to theserequests and inquiries, an interactive voice response system(IVR) is used to connect callers to the relevant specialized staffwithout delay. The center also operates 365 days a year, sothat customers can call at their convenience. In order toenhance the knowledge and response capabilities of theCustomer Center staff and to keep pace with the increasinglycomplex and function-equipped products, these staff undergotraining and product seminars with the support of the productplanning and design divisions.

■ Important Notices concerning ProductsIn the event that a product safety issue or other serious qual-

ity problem is discovered and confirmed, Sanyo’s first priorityis to ensure customer safety. The relevant information is imme-diately released to the public, and prompt measures are takensuch as inspection of affected products, and repair or replace-ment of necessary parts. In this way, Sanyo strives to minimizeany harm to customers. Important notices are also posted onthe company Website detailing information on requiredinspection and repair. Based on the Basic Policy for ProductSafety established in May 2007, the internal reporting channelsfor product incidents were reestablished in July of the sameyear. Now Sanyo is able to promptly notify customers of theproper information and response measures in the event of aproduct incident.

Moreover, if there is a major product accident, it is reportedto the Japanese Ministry of Economy, Trade and Industry, andposted on the Sanyo Website, based on the Consumer Prod-uct Safety Law.

■ Call Centers Respond Directly to CustomersSanyo has a range of specialized centers to provide informa-

tion to and receive requests from customers. For example, theCustomer Center provides general information to consumersabout purchasing or using Sanyo home appliances and prod-ucts. The sales desks at each of the Sanyo business divisionsrespond to corporate customers concerning industrial equip-ment and parts. Finally, the after-sales service and mainte-nance division answers all kinds of repair inquiries. The special-ized staff at all of these centers are ready to listen to callersand strive to achieve customer satisfaction.

After-sales Service and Maintenance DivisionSANYO Electric Service Co., Ltd., is the Sanyo Group’s

division for after-sales service and maintenance. In addition toproviding service and maintenance for all Sanyo products andindustrial equipment, this division also strives to improvecustomer satisfaction through various kinds of support activi-ties ranging from proposals for optimal devices and systems tomeet customer needs, to the design and building of theseproducts. With a service network of 120 locations acrossJapan, the division is able to deliver fast and attentive repairservice to customers. Moreover, the division is helping toreduce the environmental impact of products by maintainingthem in top condition, and ensuring the effectiveness ofenergy saving features. SANYO Electric Service offers 24-hourconsultation service, 365 days a year, for its industrial equip-ment products and technology. In the area of home appli-ances, even more accurate after-sales service is beingprovided to customers through a cooperative network ofretailers, and a direct shipping system for repair parts.

Oeuf Club and CS Voice ProgramIn order to more actively gather customer feedback, the

marketing division has established a customer membershiporganization*1 called the Oeuf Club, in order to better ascertainconsumer needs. In fiscal 2007, a new online organization, theSANYO e-LIFE CLUB, was started. Moreover, the CS divisionoperates a CS Voice Program in order to use employeeopinions in product creation, and carries out questionnaires inorder to verify new product functions and identify improvementpoints.

■ Providing Product Safety InformationAs one method to provide information on the safe usage of

products, Sanyo has prepared a resource called the TenderLoving Care and Appliance Safety Tips, which is available onthe Sanyo Website. In addition to this online information,Sanyo has also prepared the Tender Loving Care Guidebookoutlining regular inspection items and precautions for the useof 28 different products. The guidebook is distributed tocustomers through retailers and repair personnel. Moreover,dedicated staff are available toprovide the necessary informationdirectly to customers who havecontacted us through the Cus-tomer Center for questions aboutusing their products.

■ Utilizing Customer Feedback in Product　 Development

The Sanyo Group is continuing its initiatives to ensure thatcustomer opinions are reflected in the entire product develop-ment process from concept creation to planning, development,sales, and service. Customer opinions, requests and productrepair data are entered into the CS Information System on thecompany intranet, and the information is actively utilized byeach division.

Holding Customer Opinion Review MeetingsThe Customer Center sends staff to the operating divisions

to meet with those in charge of planning, development,design, quality, CS, and after-sales service. These CustomerOpinion Review Meetings are held twice a year in order toconvey customer feedback including opinions and requests,directly to the divisions. At the meetings, the results of mea-sures to deal with prior issues, the progress status of currentmeasures, and new issues are confirmed for each consumerproduct. The personnel at the meetings propose and discussmeasures from their own perspectives, which result inimprovements to products and operating manuals, and moreaccurate responsemeasures by theCustomer Center.


【Customer Center inquiry types (FY2007)】

The SANYO e-LIFE CLUB’s e-LIFE RESEARCH was created inorder to expand market research to people other thanpurchasers of Sanyo products, and gather a wider range ofconsumer opinions. For example, the airsis Room CleanerCyclone launched in September 2007, was based on suchcustomer research. Some households with allergy-sufferers orsmall children said that they were sensitive to the dusty aircaused by vacuuming in the home. This led to the creation of avacuum cleaner that not only cleans the floors, but also the air.

In fiscal 2007, announcements were placed in newspapersand on the Internet just before winter to remind customersto perform a self-inspection of their kerosene fan heaters. Atoll-free number was set up to provide information oninspections and to answer customer questions. The TenderLoving Care Guidebook was also sent to customers toexplain the self-inspections.

Responding to product incidentsIn fiscal 2007, incidents occurred involving Sanyo washer-

dryers, due to manufacturing, inspection, and repair errors.The company made a direct public announcement andprovided free inspection and repairs to the affectedcustomers. An incident also occurred involving a Sanyoelectric fan, which was caused by aged deterioration ofinternal parts, as the fan was used for over 30 years. Adver-tisements were placed to tell customers to discontinue useof this product, and free collection and disposal wasprovided. *1. The club is comprised of invited customers who completed and sent back

the user’s card included in Sanyo products, and then responded to afollow-up customer satisfaction questionnaire.

Providing Information to Customers

Placing Importance on Customer Dialogue



TOPICS Gathering opinions frommore customers: e-LIFE RESEARCH

TOPICS Customers urged to inspect theirheaters just before winter

【Customer information flow and feedback】

Customer Opinion Review Meeting

Providing rapidand

reliable support

Rapid andaccurateresponse Reflecting customer

opinions in productdevelopment and

improvement

Customers

Requestsand

consultation

After-sales service andmaintenance division Customer Center

CS InformationSystem database

Relevant divisionsoutside Japan

Topmanagement

Relevant divisionsin JapanRepair

92,614 calls（21.5%）

Purchasing93,359 calls（21.6%）

Other inquiries18,629 calls（4.3%）

Product usage227,338 calls（52.6%）

Total431,940

calls

Customer OpinionReview Meeting

Sanyo’s “Tender Loving Care and Appliance Safety Tips”(Website in Japanese)

Customer CenterThe Sanyo Customer Center receives over 400,000 calls

annually. In order to respond quickly and accurately to theserequests and inquiries, an interactive voice response system(IVR) is used to connect callers to the relevant specialized staffwithout delay. The center also operates 365 days a year, sothat customers can call at their convenience. In order toenhance the knowledge and response capabilities of theCustomer Center staff and to keep pace with the increasinglycomplex and function-equipped products, these staff undergotraining and product seminars with the support of the productplanning and design divisions.

■ Important Notices concerning ProductsIn the event that a product safety issue or other serious qual-

ity problem is discovered and confirmed, Sanyo’s first priorityis to ensure customer safety. The relevant information is imme-diately released to the public, and prompt measures are takensuch as inspection of affected products, and repair or replace-ment of necessary parts. In this way, Sanyo strives to minimizeany harm to customers. Important notices are also posted onthe company Website detailing information on requiredinspection and repair. Based on the Basic Policy for ProductSafety established in May 2007, the internal reporting channelsfor product incidents were reestablished in July of the sameyear. Now Sanyo is able to promptly notify customers of theproper information and response measures in the event of aproduct incident.

Moreover, if there is a major product accident, it is reportedto the Japanese Ministry of Economy, Trade and Industry, andposted on the Sanyo Website, based on the Consumer Prod-uct Safety Law.

■ Call Centers Respond Directly to CustomersSanyo has a range of specialized centers to provide informa-

tion to and receive requests from customers. For example, theCustomer Center provides general information to consumersabout purchasing or using Sanyo home appliances and prod-ucts. The sales desks at each of the Sanyo business divisionsrespond to corporate customers concerning industrial equip-ment and parts. Finally, the after-sales service and mainte-nance division answers all kinds of repair inquiries. The special-ized staff at all of these centers are ready to listen to callersand strive to achieve customer satisfaction.

After-sales Service and Maintenance DivisionSANYO Electric Service Co., Ltd., is the Sanyo Group’s

division for after-sales service and maintenance. In addition toproviding service and maintenance for all Sanyo products andindustrial equipment, this division also strives to improvecustomer satisfaction through various kinds of support activi-ties ranging from proposals for optimal devices and systems tomeet customer needs, to the design and building of theseproducts. With a service network of 120 locations acrossJapan, the division is able to deliver fast and attentive repairservice to customers. Moreover, the division is helping toreduce the environmental impact of products by maintainingthem in top condition, and ensuring the effectiveness ofenergy saving features. SANYO Electric Service offers 24-hourconsultation service, 365 days a year, for its industrial equip-ment products and technology. In the area of home appli-ances, even more accurate after-sales service is beingprovided to customers through a cooperative network ofretailers, and a direct shipping system for repair parts.

Oeuf Club and CS Voice ProgramIn order to more actively gather customer feedback, the

marketing division has established a customer membershiporganization*1 called the Oeuf Club, in order to better ascertainconsumer needs. In fiscal 2007, a new online organization, theSANYO e-LIFE CLUB, was started. Moreover, the CS divisionoperates a CS Voice Program in order to use employeeopinions in product creation, and carries out questionnaires inorder to verify new product functions and identify improvementpoints.

■ Providing Product Safety InformationAs one method to provide information on the safe usage of

products, Sanyo has prepared a resource called the TenderLoving Care and Appliance Safety Tips, which is available onthe Sanyo Website. In addition to this online information,Sanyo has also prepared the Tender Loving Care Guidebookoutlining regular inspection items and precautions for the useof 28 different products. The guidebook is distributed tocustomers through retailers and repair personnel. Moreover,dedicated staff are available toprovide the necessary informationdirectly to customers who havecontacted us through the Cus-tomer Center for questions aboutusing their products.

■ Utilizing Customer Feedback in Product　 Development

The Sanyo Group is continuing its initiatives to ensure thatcustomer opinions are reflected in the entire product develop-ment process from concept creation to planning, development,sales, and service. Customer opinions, requests and productrepair data are entered into the CS Information System on thecompany intranet, and the information is actively utilized byeach division.

Holding Customer Opinion Review MeetingsThe Customer Center sends staff to the operating divisions

to meet with those in charge of planning, development,design, quality, CS, and after-sales service. These CustomerOpinion Review Meetings are held twice a year in order toconvey customer feedback including opinions and requests,directly to the divisions. At the meetings, the results of mea-sures to deal with prior issues, the progress status of currentmeasures, and new issues are confirmed for each consumerproduct. The personnel at the meetings propose and discussmeasures from their own perspectives, which result inimprovements to products and operating manuals, and moreaccurate responsemeasures by theCustomer Center.


【Customer Center inquiry types (FY2007)】

The SANYO e-LIFE CLUB’s e-LIFE RESEARCH was created inorder to expand market research to people other thanpurchasers of Sanyo products, and gather a wider range ofconsumer opinions. For example, the airsis Room CleanerCyclone launched in September 2007, was based on suchcustomer research. Some households with allergy-sufferers orsmall children said that they were sensitive to the dusty aircaused by vacuuming in the home. This led to the creation of avacuum cleaner that not only cleans the floors, but also the air.

In fiscal 2007, announcements were placed in newspapersand on the Internet just before winter to remind customersto perform a self-inspection of their kerosene fan heaters. Atoll-free number was set up to provide information oninspections and to answer customer questions. The TenderLoving Care Guidebook was also sent to customers toexplain the self-inspections.

Responding to product incidentsIn fiscal 2007, incidents occurred involving Sanyo washer-

dryers, due to manufacturing, inspection, and repair errors.The company made a direct public announcement andprovided free inspection and repairs to the affectedcustomers. An incident also occurred involving a Sanyoelectric fan, which was caused by aged deterioration ofinternal parts, as the fan was used for over 30 years. Adver-tisements were placed to tell customers to discontinue useof this product, and free collection and disposal wasprovided. *1. The club is comprised of invited customers who completed and sent back

the user’s card included in Sanyo products, and then responded to afollow-up customer satisfaction questionnaire.

Providing Information to Customers

Placing Importance on Customer Dialogue



Maximizing each staff member’sability and supporting the continuousdevelopment of group companies

TOPICS Recognition for ongoing efforts toincrease hiring of persons with disabilities

Female: 55,032

Male: 44,843

Asia: 62,198

Japan: 29,199

Europe: 1,885

North America: 1,691

Other: 4,902

【Disabled employee ratios】

【Employee breakdown by gender in FY2007 (consolidated basis)】

【Employee breakdown by region in FY2007 (consolidated basis)】

【Change in the Percentage of Women in Overall Management Positions】

By region

By gender 55.1％

44.9％

62.3％

29.2％

1.9％

1.7％ 4.9％

It is the diversity of individual Sanyo employees that helpscreate new value, and that serves as the driving force behindthe growth of the company. Accordingly, Sanyo is working toaddress issues such as nationality diversity, creating opportuni-ties for women, hiring persons with disabilities, and promotinglocally hired human resources.

Together with EmployeesRespecting the diversity of individuals, and creating workplaceenvironments that allow all employees to fully realize theirabilities and career goals.

■ Promoting the Role of WomenIn order to further promote the role of women in the com-

pany, Sanyo has established a Positive Action Committee com-prised of labor and management members, half of whom arefemale, both for labor and management. The committeeactively discusses issues relating to the proper evaluation andtreatment of men and women, and initiatives based on thesediscussions have steadily produced results. Women now havea greater role in many divisions, including planning, sales, andtechnology development. The percentage of women in overallmanagement positions*1 has increased as a result. In fiscal2007, the rate was 1.40%.

■ Active Promotion of Locally HiredHuman Resources

Along with the global expansion of its operations, Sanyo iscarrying out local hiring at overseas sites in various fieldsincluding not just manufacturing, but also technology develop-ment, quality control, sales, and business planning.

Sanyo’s objective is to realize optimal posting of humanresources on a global scale, as well as business managementthat is more in touch with local conditions. This is beingachieved through the strengthening of global managementand the creation of systems for training, evaluation, and treat-ment of employees that are tailored for each country orregion.

■ Creating rewarding workplaces foremployees with disabilities

In order to create work environments that are rewarding andmotivating for everyone, the Sanyo Group is striving to increasejob opportunities for people with disabilities. Currently, disabledemployees are working at Sanyo sites across Japan where theirabilities can be best developed, including two specially desig-nated subsidiaries*2: SANYO Heart Ecology Co., Ltd., whichcultivates and operates a lease service for orchids and ornamen-tal plants, and Harima SANYO Industry Co., Ltd., whichassembles electrical products such as high-performance mas-sage devices. The employment ratio*3 for disabled persons inthe Sanyo Group is 1.95% as of June 2008.

*1. Defined as a management position of section manager or higher.

*2. These are subsidiaries that must satisfy certain conditions, includingemploying those with disabilities for at least 20% of the workforce. Underthe Japanese Law for Employment Promotion, etc., of the Disabled, theemployees in these subsidiaries can be included in the calculation of thedisabled employee ratio for the parent company.

*3. This calculation includes SANYO Electric Co., Ltd. as a parent company,two specially designated subsidiaries, and 9 subsidiaries authorized forconsolidation in the disabled persons employment calculation.

1.95 1.951.80

1.99

1.491.46

2.02

1.52 1.55

As of June each year

The role of the SANYO NorthAmerica Corporation Legal Depart-ment is to assist and ensure that eachSanyo Group company in NorthAmerica obtains the best possibleterms in their business relationships,maintains legal compliance, andprotects and enhances the Sanyobrand. The SNA Legal Departmentstaff consistently handles multiplediverse legal and intellectual property matters; therefore, asDirector of the SNA Legal Department, I consider each staffmember’s experience, and skills for their work projects sotheir individual abilities can be enhanced and maximized.

The most challenging aspects of my position are to super-vise numerous legal matters occurring on a daily basis,ensuring that each Sanyo Group company receivesoptimized professional services, and to promote proactivelegal measures throughout North America. My goal is toimplement necessary improvements to become a legaldepartment model for other overseas headquarters ofSanyo Group. In addition, my consistent long-term target isto ensure complete legal compliance of all Sanyo Groupcompanies in North America while supporting their continu-ous business development.

Brad Young,Senior Counsel

Legal DepartmentSANYO North America

Corporation

With operations on a global scale, the Sanyo Group employs99,875 employees worldwide, as of March 31, 2008. The ratioof male and female employees is mostly equal, employmentregions span the globe, and the Sanyo workforce is rich indiversity.Recruitment, hiring, and promotion are carried out in an open

and fair manner in every respect, according to the SanyoGroup’s Principles of Conduct, and its Code of Conduct andEthics. In addition to observing the relevant laws and regula-tions in each country concerned, Sanyo respects the intent ofthe UN’s Universal Declaration of Human Rights, and the ILO’sInternational Labor Standards. The individual rights of Sanyoemployees are respected, and there is no toleration ofdiscrimination based on race, religion, nationality, age, orgender.

0.0

0.5

1.0

1.5

2.0

（%）2.5Average for private Japanese corporations

Sanyo Group

20082007200620052004

0.0

0.5

1.0

1.5

（％）2.0

2007

1.40

2006

1.31

2005

1.20

2004

1.15

2003

0.75

（Fiscal year）

SANYO Energy Twicell Co., Ltd., has been recognized forits continuing efforts to achieve a high rate of employmentfor persons with disabilities. In September 2007, the com-pany received official commendation from the Governor ofGunma Prefecture as an outstanding workplace for personswith disabilities. At the same time, the Gunma site ofSANYO Heart Ecology Co., Ltd., was recognized for itsinitiatives to develop new businesses to enable the hiringof more persons with mental disabilities, who may havedifficulty performing regular jobs. As a result, this companyreceived official recognition from the Director of the Asso-ciation of Employment Development for Citizens, Gunma.

●The percentage of women in overall management positions has increased.●The Sanyo Group has been officially recognized for its ongoing efforts to increase the

number of persons with disabilities that it employs.

Highlights

Fair Employment Promoting Diversity

Fair Employment, Promoting Diversity,Creating Supportive Workplace→　www.sanyo.com/environment/en/society/access



Maximizing each staff member’sability and supporting the continuousdevelopment of group companies

TOPICS Recognition for ongoing efforts toincrease hiring of persons with disabilities

Female: 55,032

Male: 44,843

Asia: 62,198

Japan: 29,199

Europe: 1,885

North America: 1,691

Other: 4,902

【Disabled employee ratios】

【Employee breakdown by gender in FY2007 (consolidated basis)】

【Employee breakdown by region in FY2007 (consolidated basis)】

【Change in the Percentage of Women in Overall Management Positions】

By region

By gender 55.1％

44.9％

62.3％

29.2％

1.9％

1.7％ 4.9％

It is the diversity of individual Sanyo employees that helpscreate new value, and that serves as the driving force behindthe growth of the company. Accordingly, Sanyo is working toaddress issues such as nationality diversity, creating opportuni-ties for women, hiring persons with disabilities, and promotinglocally hired human resources.

Together with EmployeesRespecting the diversity of individuals, and creating workplaceenvironments that allow all employees to fully realize theirabilities and career goals.

■ Promoting the Role of WomenIn order to further promote the role of women in the com-

pany, Sanyo has established a Positive Action Committee com-prised of labor and management members, half of whom arefemale, both for labor and management. The committeeactively discusses issues relating to the proper evaluation andtreatment of men and women, and initiatives based on thesediscussions have steadily produced results. Women now havea greater role in many divisions, including planning, sales, andtechnology development. The percentage of women in overallmanagement positions*1 has increased as a result. In fiscal2007, the rate was 1.40%.

■ Active Promotion of Locally HiredHuman Resources

Along with the global expansion of its operations, Sanyo iscarrying out local hiring at overseas sites in various fieldsincluding not just manufacturing, but also technology develop-ment, quality control, sales, and business planning.

Sanyo’s objective is to realize optimal posting of humanresources on a global scale, as well as business managementthat is more in touch with local conditions. This is beingachieved through the strengthening of global managementand the creation of systems for training, evaluation, and treat-ment of employees that are tailored for each country orregion.

■ Creating rewarding workplaces foremployees with disabilities

In order to create work environments that are rewarding andmotivating for everyone, the Sanyo Group is striving to increasejob opportunities for people with disabilities. Currently, disabledemployees are working at Sanyo sites across Japan where theirabilities can be best developed, including two specially desig-nated subsidiaries*2: SANYO Heart Ecology Co., Ltd., whichcultivates and operates a lease service for orchids and ornamen-tal plants, and Harima SANYO Industry Co., Ltd., whichassembles electrical products such as high-performance mas-sage devices. The employment ratio*3 for disabled persons inthe Sanyo Group is 1.95% as of June 2008.

*1. Defined as a management position of section manager or higher.

*2. These are subsidiaries that must satisfy certain conditions, includingemploying those with disabilities for at least 20% of the workforce. Underthe Japanese Law for Employment Promotion, etc., of the Disabled, theemployees in these subsidiaries can be included in the calculation of thedisabled employee ratio for the parent company.

*3. This calculation includes SANYO Electric Co., Ltd. as a parent company,two specially designated subsidiaries, and 9 subsidiaries authorized forconsolidation in the disabled persons employment calculation.

1.95 1.951.80

1.99

1.491.46

2.02

1.52 1.55

As of June each year

The role of the SANYO NorthAmerica Corporation Legal Depart-ment is to assist and ensure that eachSanyo Group company in NorthAmerica obtains the best possibleterms in their business relationships,maintains legal compliance, andprotects and enhances the Sanyobrand. The SNA Legal Departmentstaff consistently handles multiplediverse legal and intellectual property matters; therefore, asDirector of the SNA Legal Department, I consider each staffmember’s experience, and skills for their work projects sotheir individual abilities can be enhanced and maximized.

The most challenging aspects of my position are to super-vise numerous legal matters occurring on a daily basis,ensuring that each Sanyo Group company receivesoptimized professional services, and to promote proactivelegal measures throughout North America. My goal is toimplement necessary improvements to become a legaldepartment model for other overseas headquarters ofSanyo Group. In addition, my consistent long-term target isto ensure complete legal compliance of all Sanyo Groupcompanies in North America while supporting their continu-ous business development.

Brad Young,Senior Counsel

Legal DepartmentSANYO North America

Corporation

With operations on a global scale, the Sanyo Group employs99,875 employees worldwide, as of March 31, 2008. The ratioof male and female employees is mostly equal, employmentregions span the globe, and the Sanyo workforce is rich indiversity.Recruitment, hiring, and promotion are carried out in an open

and fair manner in every respect, according to the SanyoGroup’s Principles of Conduct, and its Code of Conduct andEthics. In addition to observing the relevant laws and regula-tions in each country concerned, Sanyo respects the intent ofthe UN’s Universal Declaration of Human Rights, and the ILO’sInternational Labor Standards. The individual rights of Sanyoemployees are respected, and there is no toleration ofdiscrimination based on race, religion, nationality, age, orgender.

0.0

0.5

1.0

1.5

2.0

（%）2.5Average for private Japanese corporations

Sanyo Group

20082007200620052004

0.0

0.5

1.0

1.5

（％）2.0

2007

1.40

2006

1.31

2005

1.20

2004

1.15

2003

0.75

（Fiscal year）

SANYO Energy Twicell Co., Ltd., has been recognized forits continuing efforts to achieve a high rate of employmentfor persons with disabilities. In September 2007, the com-pany received official commendation from the Governor ofGunma Prefecture as an outstanding workplace for personswith disabilities. At the same time, the Gunma site ofSANYO Heart Ecology Co., Ltd., was recognized for itsinitiatives to develop new businesses to enable the hiringof more persons with mental disabilities, who may havedifficulty performing regular jobs. As a result, this companyreceived official recognition from the Director of the Asso-ciation of Employment Development for Citizens, Gunma.

●The percentage of women in overall management positions has increased.●The Sanyo Group has been officially recognized for its ongoing efforts to increase the

number of persons with disabilities that it employs.

Highlights

Fair Employment Promoting Diversity

Fair Employment, Promoting Diversity,Creating Supportive Workplace→　www.sanyo.com/environment/en/society/access



TOPICS Certified based on the Next GenerationNurturing Support Measures Promotion Law

TOPICS Group-wide introduction ofrisk assessment for labor safety

TOPICS System for checking stresslevels made easier to useI learned a lot during my childcare experience

【Accident occurrence rates (per million labor hours)［non-consolidated］】

0.0

0.1

0.2

0.3

0.4

（％）0.5

Electric equipment and appliance manufacturers in Japan

SANYO Electric Co., Ltd.

20072006200520042003

0.35 0.39 0.390.40 0.37

0.066

0.235

0.0400.119

0.045

【Number of Employees using Support Systems for Balancing Work and Family Life】(Unit: People)

Maternity leave

Childcare leave

Family medical leave

FY2005

150

153

2

( inc luding zeromale employees)

(including 2 maleemployees)


FY2006

127

175

4

FY2007

124

152

6

（Fiscal year）


■ Proper Evaluation and TreatmentIn order to ensure sustainable growth in the future, it is important for

the Sanyo Group to specify organizational roles according to the brandvision and management policy.The desired direction for the organizationthen needs to be unified,and the cohesive momentum increased.

A new personnel system was implemented in fiscal 2007. The newsystem clarifies the organizational functions and the expected roles ofemployees within this framework. It also specifies the specializedabilities that need to be acquired in order to fulfill each of the roles.The target management system, evaluation standards, and promotionconditions are then established based on this. By evaluating whethera good balance has been achieved for both the acquisition ofspecialized skills and the execution of the expected role, and byreflecting this in the treatment and remuneration, a moreresults-oriented personnel system has been established for bettersatisfaction, transparency and fairness.

■ Encouraging a Balance of Work andFamily Life

The Sanyo Group is creating a welcoming work environment forboth male and female employees who want to balance work andfamily life. Initiatives have been carried out mainly by thelabor-management Committee for Measures to Support theDevelopment of the Next Generation, including the measures topromote the use of childcare leave by male employees, and theintroduction of a program to support workers returning to theworkplace.

■ Placing Importance on Health and SafetyThe Sanyo Group has established an occupational health and

safety committee made up of the industrial physician andrepresentatives from labor, management, and the employeehealth insurance society. The central health and safetycommittee determines the health and safety policies for thewhole group, while the individual health and safetycommittees at each site implement activities that suit thefeatures and conditions at their own locations, based on thegroup-wide policies.Every year, a group-wide Health and Safety Conference is held

with the participation of approximately 1,300 people includingexecutives and division managers. Its goal is to increaseawareness of health and safety issues through the sharing ofinformation concerning the current situations and advancesmade in the workplace.

■ Sincere Dialogue with EmployeesThe Sanyo Group places importance on dialogue with its labor union

and building good relations with employees. The SANYO ElectricWorkers’ Union is made up of about 18,000 employees from SANYOElectric Co., Ltd., and its main subsidiaries in Japan. The companyholds daily discussions with the union on employee labor conditionsand other matters, and both management and union leaders attendthe Joint Management-Labor Conference, which is held regularly. Atthis conference, top management explains management policy andlistens to the opinions of employees from the union perspective, andstrives to reflect them in management of the company.

■ Working towards Zero Occupational AccidentsAt Sanyo, when an industrial accident occurs, an accident

report is immediately sent to all the health and safetymanagers, and measures are taken to prevent recurrence ofsimilar accidents. In addition, when multiple accidents occurwithin a three-month period, or when there is a seriousaccident, or one resulting in an employee missing a day ormore of work for medical treatment, the site in question isdesignated as requiring safety management measures. A planis then drafted in order to prevent reoccurrence of similaraccidents. Based on the plan, the designated site must carryout workplace safety patrols and intensive inspection activitiesfor three months. Such initiatives help to sustain the awarenessand concern of managers and employees towards safety.Sanyo sites that have introduced occupational health and

■ Promoting Good Mental HealthThe environmental stress in companies has become more

pronounced in recent years, and the percentage of employeesmissing work due to mental health issues has increased as aresult. Therefore, appropriate measures are necessary tocombat this trend.

Sanyo provides mental health materials for employees on thecompany intranet, including a checklist for self-evaluation ofstress levels, and information on consultation offices at thecompany’s industrial health centers. Furthermore, in order todeepen awareness of good mental health, and to detect andhelp employees with mental health issues in the early stages,Sanyo offers classes for managers given by internal and outsidemental health experts, as well as "active listening" training formental health counseling, at each Sanyo site. Since managersplay an important role in connecting subordinates with theindustrial physicians and other experts, mental health seminarsare held with the goal of reaching all managers in every Sanyosite in Japan, in order to improve their management skills andawareness. Participants in the mental health classes are given aquestionnaire, and based on this feedback, the trainingprogram is improved and better results achieved.

1. Establish zero-hazard workplaces

2. Promote overall health

3. Hold health and safety activities for all employees

Basic Policy for Health and Safety

safety management strive for continual improvement of thesystem through risk assessment and internal auditing. Moreover,we hold meetings to report successful improvement activities,and promote measures for occupational accident prevention.

General Management-Labor Conference

*1. Based on achieving an action plan for child-rearing support, and meetingthe certification standards of the Japanese Ministry of Health, Labour andWelfare.

In recognition of Sanyo’s various childcare support initiatives, inApril 2007, Sanyo obtained certification*1 based on the NextGeneration Nurturing Support Measures Promotion Law. Startingin April 2008, Sanyo expanded the eligibility period under itssystem of shorter working hours for parents with young children.Employees are now eligible for the system until March 31st of theyear in which the child completes grade 3. In order to continuepromoting work environments that enable parents to balancechildcare and work, Sanyo established a second action plan forchild-rearing support, and took initiatives such as awarenessraising, improvement of understanding at the workplace, andother measures to support the balancing of work and parentingresponsibilities. In fiscal 2007, Sanyo promoted group-wide introduction of

risk management for the implementation of suitable safetymeasures from a safety management perspective. This wasdone through advance identification of latent dangers in theworkplace on an independent basis, rather than relying onthe introduction of such measures after an accident.

In fiscal 2007, Sanyo created a checklist for self-evaluationof stress levels on the company intranet to allowemployees to easily check their own health conditions.Based on this, full-scale implementation of activities toimprove workplace environments will be carried outstarting in fiscal 2008.

For me, housework and childcare turned out to be even more demanding than my job. This is because, if you are performinghousework and childcare alone, you must keep your eyes on your child 24 hours a day, while cooking meals and doing laundryand other work at the same time. With a job outside the home, you are able to get a break from childcare duties while at work,and then leave behind your work responsibilities when at home. I’m sure that everyone realizes the labor involved with doinghousework and childcare all alone, but you cannot fully understand how hard it is until you actually try it for yourself. Childcareleave was a truly educational experience for me. I feel like I have achieved something that few other men have attempted.

Tatsuya FujishimaEngineering Dept. System Solution Business H.Q.


Creating Supportive Workplaces Occupational Health and Safety



TOPICS Certified based on the Next GenerationNurturing Support Measures Promotion Law

TOPICS Group-wide introduction ofrisk assessment for labor safety

TOPICS System for checking stresslevels made easier to useI learned a lot during my childcare experience

【Accident occurrence rates (per million labor hours)［non-consolidated］】

0.0

0.1

0.2

0.3

0.4

（％）0.5

Electric equipment and appliance manufacturers in Japan

SANYO Electric Co., Ltd.

20072006200520042003

0.35 0.39 0.390.40 0.37

0.066

0.235

0.0400.119

0.045

【Number of Employees using Support Systems for Balancing Work and Family Life】(Unit: People)

Maternity leave

Childcare leave

Family medical leave

FY2005

150

153

2


(including 2 maleemployees)


FY2006

127

175

4

FY2007

124

152

6

（Fiscal year）


■ Proper Evaluation and TreatmentIn order to ensure sustainable growth in the future, it is important for

the Sanyo Group to specify organizational roles according to the brandvision and management policy.The desired direction for the organizationthen needs to be unified,and the cohesive momentum increased.

A new personnel system was implemented in fiscal 2007. The newsystem clarifies the organizational functions and the expected roles ofemployees within this framework. It also specifies the specializedabilities that need to be acquired in order to fulfill each of the roles.The target management system, evaluation standards, and promotionconditions are then established based on this. By evaluating whethera good balance has been achieved for both the acquisition ofspecialized skills and the execution of the expected role, and byreflecting this in the treatment and remuneration, a moreresults-oriented personnel system has been established for bettersatisfaction, transparency and fairness.

■ Encouraging a Balance of Work andFamily Life

The Sanyo Group is creating a welcoming work environment forboth male and female employees who want to balance work andfamily life. Initiatives have been carried out mainly by thelabor-management Committee for Measures to Support theDevelopment of the Next Generation, including the measures topromote the use of childcare leave by male employees, and theintroduction of a program to support workers returning to theworkplace.

■ Placing Importance on Health and SafetyThe Sanyo Group has established an occupational health and

safety committee made up of the industrial physician andrepresentatives from labor, management, and the employeehealth insurance society. The central health and safetycommittee determines the health and safety policies for thewhole group, while the individual health and safetycommittees at each site implement activities that suit thefeatures and conditions at their own locations, based on thegroup-wide policies.Every year, a group-wide Health and Safety Conference is held

with the participation of approximately 1,300 people includingexecutives and division managers. Its goal is to increaseawareness of health and safety issues through the sharing ofinformation concerning the current situations and advancesmade in the workplace.

■ Sincere Dialogue with EmployeesThe Sanyo Group places importance on dialogue with its labor union

and building good relations with employees. The SANYO ElectricWorkers’ Union is made up of about 18,000 employees from SANYOElectric Co., Ltd., and its main subsidiaries in Japan. The companyholds daily discussions with the union on employee labor conditionsand other matters, and both management and union leaders attendthe Joint Management-Labor Conference, which is held regularly. Atthis conference, top management explains management policy andlistens to the opinions of employees from the union perspective, andstrives to reflect them in management of the company.

■ Working towards Zero Occupational AccidentsAt Sanyo, when an industrial accident occurs, an accident

report is immediately sent to all the health and safetymanagers, and measures are taken to prevent recurrence ofsimilar accidents. In addition, when multiple accidents occurwithin a three-month period, or when there is a seriousaccident, or one resulting in an employee missing a day ormore of work for medical treatment, the site in question isdesignated as requiring safety management measures. A planis then drafted in order to prevent reoccurrence of similaraccidents. Based on the plan, the designated site must carryout workplace safety patrols and intensive inspection activitiesfor three months. Such initiatives help to sustain the awarenessand concern of managers and employees towards safety.Sanyo sites that have introduced occupational health and

■ Promoting Good Mental HealthThe environmental stress in companies has become more

pronounced in recent years, and the percentage of employeesmissing work due to mental health issues has increased as aresult. Therefore, appropriate measures are necessary tocombat this trend.

Sanyo provides mental health materials for employees on thecompany intranet, including a checklist for self-evaluation ofstress levels, and information on consultation offices at thecompany’s industrial health centers. Furthermore, in order todeepen awareness of good mental health, and to detect andhelp employees with mental health issues in the early stages,Sanyo offers classes for managers given by internal and outsidemental health experts, as well as "active listening" training formental health counseling, at each Sanyo site. Since managersplay an important role in connecting subordinates with theindustrial physicians and other experts, mental health seminarsare held with the goal of reaching all managers in every Sanyosite in Japan, in order to improve their management skills andawareness. Participants in the mental health classes are given aquestionnaire, and based on this feedback, the trainingprogram is improved and better results achieved.

1. Establish zero-hazard workplaces

2. Promote overall health

3. Hold health and safety activities for all employees

Basic Policy for Health and Safety

safety management strive for continual improvement of thesystem through risk assessment and internal auditing. Moreover,we hold meetings to report successful improvement activities,and promote measures for occupational accident prevention.

General Management-Labor Conference

*1. Based on achieving an action plan for child-rearing support, and meetingthe certification standards of the Japanese Ministry of Health, Labour andWelfare.

In recognition of Sanyo’s various childcare support initiatives, inApril 2007, Sanyo obtained certification*1 based on the NextGeneration Nurturing Support Measures Promotion Law. Startingin April 2008, Sanyo expanded the eligibility period under itssystem of shorter working hours for parents with young children.Employees are now eligible for the system until March 31st of theyear in which the child completes grade 3. In order to continuepromoting work environments that enable parents to balancechildcare and work, Sanyo established a second action plan forchild-rearing support, and took initiatives such as awarenessraising, improvement of understanding at the workplace, andother measures to support the balancing of work and parentingresponsibilities. In fiscal 2007, Sanyo promoted group-wide introduction of

risk management for the implementation of suitable safetymeasures from a safety management perspective. This wasdone through advance identification of latent dangers in theworkplace on an independent basis, rather than relying onthe introduction of such measures after an accident.

In fiscal 2007, Sanyo created a checklist for self-evaluationof stress levels on the company intranet to allowemployees to easily check their own health conditions.Based on this, full-scale implementation of activities toimprove workplace environments will be carried outstarting in fiscal 2008.

For me, housework and childcare turned out to be even more demanding than my job. This is because, if you are performinghousework and childcare alone, you must keep your eyes on your child 24 hours a day, while cooking meals and doing laundryand other work at the same time. With a job outside the home, you are able to get a break from childcare duties while at work,and then leave behind your work responsibilities when at home. I’m sure that everyone realizes the labor involved with doinghousework and childcare all alone, but you cannot fully understand how hard it is until you actually try it for yourself. Childcareleave was a truly educational experience for me. I feel like I have achieved something that few other men have attempted.

Tatsuya FujishimaEngineering Dept. System Solution Business H.Q.


Creating Supportive Workplaces Occupational Health and Safety



TOPICS New Management SystemBriefings

Together with Local CommunitiesBy living together with local communities and helping them togrow and prosper, Sanyo is contributing to society while utilizingits management resources and expertise through its businesses.

Together with Business PartnersAs a buyer of diverse materials and components, the Sanyo Groupseeks to build good relationships with its business partnersthrough fair selection of suppliers, and purchasing that is legallycompliant.

“Environment for All” ActivitiesIn fiscal 2005, the Sanyo Forest work camp project for Japa-

nese forest protection was begun. Two hectares of aprefecture-owned forest in Kurabuchi, Takasaki, Gunma havebeen set aside for the project, and Sanyo volunteers and theirfamilies have been carrying out maintenance of this forestseveral times a year. This has become an important opportu-nity to refocus awareness on the importance of the naturalenvironment, and to foster the spirit of volunteerism. The totalnumber of participants reached 171 by the end of fiscal 2007.In fiscal 2008, another Sanyo Forest work camp will be openedin Miyama, Nantan, Kyoto.

■ Environmental ProtectionEducation and Awareness-raising with the Solar Ark

Located at the Gifu site, the Solar Ark solar power generationsystem is a symbol of the Sanyo Group's commitment to devel-oping potential for and realizing the dream of clean energy, as itstrives to become a leading provider of Environment- andEnergy-related products. With its impressive appearance, theSolar Ark has helped raise awareness of solar power.

There is a unique solar energy museum next to the Solar Ark,and is used for a variety of purposes. It is visited by membersof the general public for continuing education programs onenvironmental issues, as well as by elementary, junior high, andsenior high school students as part of their social studies. The

Based on a General Policy on Purchasing, Sanyo is pursuingopen and global purchasing with a wide range of businesspartners in and outside Japan. The selection of suppliers isdetermined through a comprehensive evaluation that is impar-tial and fair, based on Sanyo’s standards. The evaluation crite-ria include a supplier’s record in the areas of human rights andlegal compliance, along with the company’s fulfillment of socialresponsibilities.

The Sanyo Group promotes harmonious business activities byadapting the company’s standards to better meet the regula-tions and conditions in each country or region that Sanyooperates.

Communication is essential in order to determine the activi-ties and policies that are needed for each community. Whenparticipating in and supporting local volunteer activities suchas community renewal, it is the employees of the Sanyo siteconcerned that maintain a dialogue with the local governmentor local resident representatives. Community understanding ofthe vision and business activities of the Sanyo Group is alsodeepened through this kind of dialogue.

By utilizing its management resources and specialized tech-nology, Sanyo is helping local communities to grow and pros-per in the areas of environmental protection, youth education,and employee volunteer activity support. In this way, the com-pany is working with local communities to advance its socialcontribution activities.These kinds of corporate citizenship activities help instill thespirit of volunteerism in every Sanyo employee, and they arean important opportunity for communication with local society.By building community partnerships with the aim of helping tocreate a vibrant society based on open cooperation, Sanyo isalso investing in its own business future.

■ Compliance with the Subcontract ActWhen it comes to materials/components purchasing, the

Sanyo Group ensures thorough compliance with the JapaneseAct against Delay in Payment of Subcontract Proceeds, Etc. toSubcontractors (Subcontract Act), and faithfully honors thebasic transaction agreements that it signs with suppliers. Thecompany checks whether transactions are being carried out inan impartial and fair manner through internal surveys and selfaudits. The Sanyo Group also carries out regular internal train-ing regarding the Subcontract Act, in order to improve theawareness and knowledge of relevant executives and employ-ees. In fiscal 2007, ten seminars and briefings were held forabout 500 employees.

■ Antitrust Law Compliance SurveyIn order to prevent any violations of the Japanese Antitrust

Law in its business activities, the Sanyo Group regularly imple-ments Antitrust Law Compliance Surveys for managers in itssales, purchasing, technology, and manufacturing depart-ments. The survey is based on a checklist prepared accordingto various guidelines provided by the relevant authorities. Thesurvey participants are interviewed or complete a writtenquestionnaire, and are told to make the necessary improve-ments when any issues are discovered. In fiscal 2007, thesurvey covered 487 employees, mostly managers in variousdepartments.

museum is also used by organizers of various assemblies onenergy and environmental topics, by participants in programssponsored by the Gifu Centers for Climate Change Actions,by educators on inspection tours, and by corporate employeesfor their training programs. In addition to these tours andtraining courses, Solar Cell Courses are sometimes held toteach the importance of clean energy such as solar power.Moreover, Gifu Earth Environment School is also held basedon cooperation between industry, government, academia, andthe public in Gifu prefecture.Parents and children are able tolearn the importance of theglobal environment throughvarious workshops and lectureson topics that are relevant totheir near affairs.

Over 300,000 people from 90countries have visited the SolarArk since it opened, and itprovides a great opportunity tothink about life and the Earth.

Solar Energy Museum

Sanyo Forest work camp (Gunma)

Solar Ark

1. In order to diversify purchasing activities broadly in andoutside Japan, to give suppliers equal opportunities, andto ensure customer satisfaction, purchasing personnelmust pursue the global and open activities for the optimalquality and prices, and timely delivery.

2. Based on the rules of the Sanyo group, the purchasingpersonnel must pursue impartial, fair and comprehensiveevaluation, and unbiased and transparent selection ofsuppliers.

3. Mutual understanding and trust must be established bytreating suppliers as good partners to achieve eachmission, through creation of healthy relationships.

4. “Green procurement”, which provides preferred treatmentto purchasing of ecologically friendly products from theecologically friendly suppliers, must be promoted for striv-ing to be in harmony with the global environment.

5. Every relevant laws and regulations in and outside Japan,as well as company rules, must be complied at purchasingactivities. Furthermore, confidential information fromsuppliers obtained through purchasing activities must bestrictly managed, and confidentiality must be maintained.

General Policy on Purchasing

*1. Analyzing products down to the component units, investigating qualityand safety for each part including the manufacturing process, and thenimproving the products.

In order to create products that will delight customers, theSanyo Group is strengthening its development purchasingefforts by taking cost, quality, safety, and environmentalfactors into consideration right from the design stage, throughcooperation between the design/development departmentsand the purchasing departments. In the field of commercialequipment, Sanyo invites the participation of suppliers inreview meetings for teardown*1 and for added value creation(value analysis and engineering). In this way, the group isstrengthening partnerships for better product creation.

In recent years, the group’s procurement from China andSoutheast Asia has rapidly increased. The amount of purchas-ing from southern China in particular is equal to about 20% ofthe group’s entire procurement. Consequently, in 2006 Sanyoestablished an international procurement center in this region,and is promoting initiatives to improve the group’s purchasingabilities, and to build relationships of trust with suppliers. In thefuture, Sanyo will expand these measures to northern andeastern China, as well as Southeast Asia.

New Management System Briefings for Suppliers were heldin fiscal 2007. In addition to information on Sanyo’s businessdirections, suppliers were told about the purchasingdepartment’s priority measures for development purchasingand international procurement. The business divisions alsomade efforts to obtain the opinions and feedback of suppliersby providing opportunities for information exchange.

Social Contribution Activities→　www.sanyo.co.jp/social/culture/(Japanese Only)→　www.sanyo.com/environment/en/society/

access

Impartial and fair transactions Dialogue with Local Communities

Corporate Contribution together with SocietyStrengthening partnerships



TOPICS New Management SystemBriefings

Together with Local CommunitiesBy living together with local communities and helping them togrow and prosper, Sanyo is contributing to society while utilizingits management resources and expertise through its businesses.

Together with Business PartnersAs a buyer of diverse materials and components, the Sanyo Groupseeks to build good relationships with its business partnersthrough fair selection of suppliers, and purchasing that is legallycompliant.

“Environment for All” ActivitiesIn fiscal 2005, the Sanyo Forest work camp project for Japa-

nese forest protection was begun. Two hectares of aprefecture-owned forest in Kurabuchi, Takasaki, Gunma havebeen set aside for the project, and Sanyo volunteers and theirfamilies have been carrying out maintenance of this forestseveral times a year. This has become an important opportu-nity to refocus awareness on the importance of the naturalenvironment, and to foster the spirit of volunteerism. The totalnumber of participants reached 171 by the end of fiscal 2007.In fiscal 2008, another Sanyo Forest work camp will be openedin Miyama, Nantan, Kyoto.

■ Environmental ProtectionEducation and Awareness-raising with the Solar Ark

Located at the Gifu site, the Solar Ark solar power generationsystem is a symbol of the Sanyo Group's commitment to devel-oping potential for and realizing the dream of clean energy, as itstrives to become a leading provider of Environment- andEnergy-related products. With its impressive appearance, theSolar Ark has helped raise awareness of solar power.

There is a unique solar energy museum next to the Solar Ark,and is used for a variety of purposes. It is visited by membersof the general public for continuing education programs onenvironmental issues, as well as by elementary, junior high, andsenior high school students as part of their social studies. The

Based on a General Policy on Purchasing, Sanyo is pursuingopen and global purchasing with a wide range of businesspartners in and outside Japan. The selection of suppliers isdetermined through a comprehensive evaluation that is impar-tial and fair, based on Sanyo’s standards. The evaluation crite-ria include a supplier’s record in the areas of human rights andlegal compliance, along with the company’s fulfillment of socialresponsibilities.

The Sanyo Group promotes harmonious business activities byadapting the company’s standards to better meet the regula-tions and conditions in each country or region that Sanyooperates.

Communication is essential in order to determine the activi-ties and policies that are needed for each community. Whenparticipating in and supporting local volunteer activities suchas community renewal, it is the employees of the Sanyo siteconcerned that maintain a dialogue with the local governmentor local resident representatives. Community understanding ofthe vision and business activities of the Sanyo Group is alsodeepened through this kind of dialogue.

By utilizing its management resources and specialized tech-nology, Sanyo is helping local communities to grow and pros-per in the areas of environmental protection, youth education,and employee volunteer activity support. In this way, the com-pany is working with local communities to advance its socialcontribution activities.These kinds of corporate citizenship activities help instill thespirit of volunteerism in every Sanyo employee, and they arean important opportunity for communication with local society.By building community partnerships with the aim of helping tocreate a vibrant society based on open cooperation, Sanyo isalso investing in its own business future.

■ Compliance with the Subcontract ActWhen it comes to materials/components purchasing, the

Sanyo Group ensures thorough compliance with the JapaneseAct against Delay in Payment of Subcontract Proceeds, Etc. toSubcontractors (Subcontract Act), and faithfully honors thebasic transaction agreements that it signs with suppliers. Thecompany checks whether transactions are being carried out inan impartial and fair manner through internal surveys and selfaudits. The Sanyo Group also carries out regular internal train-ing regarding the Subcontract Act, in order to improve theawareness and knowledge of relevant executives and employ-ees. In fiscal 2007, ten seminars and briefings were held forabout 500 employees.

■ Antitrust Law Compliance SurveyIn order to prevent any violations of the Japanese Antitrust

Law in its business activities, the Sanyo Group regularly imple-ments Antitrust Law Compliance Surveys for managers in itssales, purchasing, technology, and manufacturing depart-ments. The survey is based on a checklist prepared accordingto various guidelines provided by the relevant authorities. Thesurvey participants are interviewed or complete a writtenquestionnaire, and are told to make the necessary improve-ments when any issues are discovered. In fiscal 2007, thesurvey covered 487 employees, mostly managers in variousdepartments.

museum is also used by organizers of various assemblies onenergy and environmental topics, by participants in programssponsored by the Gifu Centers for Climate Change Actions,by educators on inspection tours, and by corporate employeesfor their training programs. In addition to these tours andtraining courses, Solar Cell Courses are sometimes held toteach the importance of clean energy such as solar power.Moreover, Gifu Earth Environment School is also held basedon cooperation between industry, government, academia, andthe public in Gifu prefecture.Parents and children are able tolearn the importance of theglobal environment throughvarious workshops and lectureson topics that are relevant totheir near affairs.

Over 300,000 people from 90countries have visited the SolarArk since it opened, and itprovides a great opportunity tothink about life and the Earth.

Solar Energy Museum

Sanyo Forest work camp (Gunma)

Solar Ark

1. In order to diversify purchasing activities broadly in andoutside Japan, to give suppliers equal opportunities, andto ensure customer satisfaction, purchasing personnelmust pursue the global and open activities for the optimalquality and prices, and timely delivery.

2. Based on the rules of the Sanyo group, the purchasingpersonnel must pursue impartial, fair and comprehensiveevaluation, and unbiased and transparent selection ofsuppliers.

3. Mutual understanding and trust must be established bytreating suppliers as good partners to achieve eachmission, through creation of healthy relationships.

4. “Green procurement”, which provides preferred treatmentto purchasing of ecologically friendly products from theecologically friendly suppliers, must be promoted for striv-ing to be in harmony with the global environment.

5. Every relevant laws and regulations in and outside Japan,as well as company rules, must be complied at purchasingactivities. Furthermore, confidential information fromsuppliers obtained through purchasing activities must bestrictly managed, and confidentiality must be maintained.

General Policy on Purchasing

*1. Analyzing products down to the component units, investigating qualityand safety for each part including the manufacturing process, and thenimproving the products.

In order to create products that will delight customers, theSanyo Group is strengthening its development purchasingefforts by taking cost, quality, safety, and environmentalfactors into consideration right from the design stage, throughcooperation between the design/development departmentsand the purchasing departments. In the field of commercialequipment, Sanyo invites the participation of suppliers inreview meetings for teardown*1 and for added value creation(value analysis and engineering). In this way, the group isstrengthening partnerships for better product creation.

In recent years, the group’s procurement from China andSoutheast Asia has rapidly increased. The amount of purchas-ing from southern China in particular is equal to about 20% ofthe group’s entire procurement. Consequently, in 2006 Sanyoestablished an international procurement center in this region,and is promoting initiatives to improve the group’s purchasingabilities, and to build relationships of trust with suppliers. In thefuture, Sanyo will expand these measures to northern andeastern China, as well as Southeast Asia.

New Management System Briefings for Suppliers were heldin fiscal 2007. In addition to information on Sanyo’s businessdirections, suppliers were told about the purchasingdepartment’s priority measures for development purchasingand international procurement. The business divisions alsomade efforts to obtain the opinions and feedback of suppliersby providing opportunities for information exchange.

Social Contribution Activities→　www.sanyo.co.jp/social/culture/(Japanese Only)→　www.sanyo.com/environment/en/society/

access

Impartial and fair transactions Dialogue with Local Communities

Corporate Contribution together with SocietyStrengthening partnerships



■ Youth DevelopmentEnvironmental Education Activities for Elementary School Students“Eco Education Program for Elementary Schools”

Sanyo has been carrying out environmental education forschool children, centered on the topic of Sanyo’s enelooprechargeable batteries, which can be reused about 1,000times. Since April 2006, Sanyo instructors have visited 82elementary schools in Japan and have given lessons to 6,260students about the importance of protecting the global envi-ronment through practical “reusing batteries” experience.

In order to provide environmental education to even moreelementary schools, in fiscal 2007 Sanyo began initiatives toprovide classroom materials free of charge to teachersinvolved in environmental education. In addition to elementaryschool teachers, NPO and local government instructors havereceived these Sanyo materials in order to convey the impor-tance of rechargeable batteries and the 3Rs*1 for the globalenvironment to about 3,000 children. As part of new efforts,Sanyo has cooperated on environmental classes at the EcoProducts exhibit, joint classes with TOMY Company, Ltd. usingthe i-SOBOT*2 toy, and sessions with major tutorial schools inJapan, thereby expanding the extent of Sanyo’s environmentaleducation. In recent years, the demand for environmental edu-cation is also increasing outside Japan, and Sanyo is providingsupport from Japan so that classes can be held that match theeducational styles in the countries concerned (see pages 55 to57).

Workshops and Scientific Experiment Shows at the Solar ArkSince fiscal 2002, the Solar Ark has organized original work-

shops and scientific experiment shows to increase awarenessof global environmental issues and interest in science andtechnology among children. A total of 39,908 people haveparticipated in these events up to the end of March, 2008. TheCreative Kids Workshop is a summer program, and 2007marked the third holding of the workshop. Many parents andchildren got the chance to experience the fun of productcreation, thanks to the efforts of Sanyo Electric volunteersincluding product designers.

The 5th Eco & Science Festival was held in March 2008, as anevent to help children develop empathy for both science andthe environment. This time new activities were tried at thissolar energy museum, including sun observations and themaking of dye-sensitized solar cells.

The Youngsters' Science Festival at the Solar Ark*3 is heldevery year as the largest festival of its kind in the Gifu region,featuring a large workshop where children can experience thefun of science. It is popular with children in Gifu and Aichiprefectures. Since 2005, Sanyo also has continued to partici-pate in regional science museum projects supported by theJapan Science and Technology Agency, and in science classessponsored by the Japan Society of Applied Physics, TokaiBranch.

■ Supporting Employee Volunteer ActivitiesBased on management-labor cooperation, Sanyo is creating

work environments that make it easy for employees to activelyparticipate in volunteer activities.

The Volunteer Time Off and Temporary Leave Programswere introduced in 1992 as a specific workplace improvementpolicy. In fiscal 2007, a total of 176 employees took volunteertime off in order to participate in various activities. In fiscal2006, a Silver Ribbon Award system was created to recognizethe social contribution activities of employees. In this way,Sanyo is encouraging the spirit of volunteerism among itsstaff, increasing understanding in the workplace, and creatingenvironments that are easier to work in.●Volunteer time off

If employees wish to participate in volunteer or communityservice activities on a weekday, they can obtain specialpaid days off up to six days a year (or 12 half-days).

●Volunteer temporary leaveIf employees wish to participate in extended-term volun-teer activities, they can take paid leave for one month, orup to one year. (This includes training and actual activitytime for those participating in the Japan Overseas Coop-eration Volunteers program.)

Interacting with Communities through SportsWith the mission of helping children who are the next gen-

eration to find their dreams, and to experience the excitementof sports, Sanyo’s badminton team and Wild Knights rugbyteam are actively engaged in community outreach activities.

In 1992, the badminton team set up a junior badmintonschool, under the guidance of mostly retired team members. Incooperation with local leagues, the members gave classes inelementary school gymnasiums. In addition to contributing tothe sound development of elementary and junior high schoolstudents through a community, school, and corporate partner-ship, Sanyo’s badminton team is actively participating in activi-ties with the aim of increasing the popularity of badminton,including technique training sessions across Japan. The retiredmembers of Sanyo’s Wild Knights rugby team provide coachingat rugby schools for elementary and junior high schoolstudents. The players and staff also meet with children acrossJapan to play tag rugby*4. Through interaction with 13,339children in fiscal 2007, Sanyo’s rugby team has been supportingthe sound development of children, while increasing thenumber of rugby fans and promoting local sport.


*1. Reduce, reuse and recycle*2. World's smallest bipedal humanoid robot, which comes equipped with

eneloop batteries

*4. Instead of tackling, players attempt to pull waist tags from the ball carrier

*3. A nationwide workshop festival held by Japan Science Foundation with thebacking of agencies including the Ministry of Education, Culture, Sports,Science and Technology. The Solar Ark Festival is co-sponsored with theFestival Executive Committee, comprised mainly of the Gifu UniversityFaculty of Education, Ozaki Lab.

*5 Since some projects are ongoing, the number of grants is greater than thenumber of organizations.Creative Kids Workshop

Badminton workshop

Tag rugby

Environmental Classes at Elementary Schools

■ SANYO Think GAIA FoundationFollowing the completion of the Solar Ark solar power gen-

eration system in December 2001, the SANYO EnvironmentalFund was established in April 2002 with the goal of contribut-ing the energy savings generated by the system to variousenvironmental conservation activities. Headquartered at Cor-porate Environment Center, this fund has been offering finan-cial support to worthy environmental activities carried out byvolunteer organizations and NPOs.

In February 2006, the name of the fund was changed to theSANYO Think GAIA Foundation, and its activities wereexpanded to include support for the sound development ofyouth and social education. In the six years since thefoundation’s original establishment, it has given 34 grants*5

totaling about 40 million yen to 20 organizations. Recipientsinclude the Gifu Youngsters' Science Festival, the Gifu EarthEnvironment School, and the Otsu Environmental Forum.

●Through the Eco Education Program for Elementary Schools, environmental classes havebeen given to 6,260 children at 82 schools over two years.

●The SANYO Think GAIA Foundation has given out about 40 million yen in grants over sixyears.

Highlights

SANYO Think GAIA Foundation→　www.sanyo-ecokikin.jp/（Japanese Only）

access

Grants and Donations



■ Youth DevelopmentEnvironmental Education Activities for Elementary School Students“Eco Education Program for Elementary Schools”

Sanyo has been carrying out environmental education forschool children, centered on the topic of Sanyo’s enelooprechargeable batteries, which can be reused about 1,000times. Since April 2006, Sanyo instructors have visited 82elementary schools in Japan and have given lessons to 6,260students about the importance of protecting the global envi-ronment through practical “reusing batteries” experience.

In order to provide environmental education to even moreelementary schools, in fiscal 2007 Sanyo began initiatives toprovide classroom materials free of charge to teachersinvolved in environmental education. In addition to elementaryschool teachers, NPO and local government instructors havereceived these Sanyo materials in order to convey the impor-tance of rechargeable batteries and the 3Rs*1 for the globalenvironment to about 3,000 children. As part of new efforts,Sanyo has cooperated on environmental classes at the EcoProducts exhibit, joint classes with TOMY Company, Ltd. usingthe i-SOBOT*2 toy, and sessions with major tutorial schools inJapan, thereby expanding the extent of Sanyo’s environmentaleducation. In recent years, the demand for environmental edu-cation is also increasing outside Japan, and Sanyo is providingsupport from Japan so that classes can be held that match theeducational styles in the countries concerned (see pages 55 to57).

Workshops and Scientific Experiment Shows at the Solar ArkSince fiscal 2002, the Solar Ark has organized original work-

shops and scientific experiment shows to increase awarenessof global environmental issues and interest in science andtechnology among children. A total of 39,908 people haveparticipated in these events up to the end of March, 2008. TheCreative Kids Workshop is a summer program, and 2007marked the third holding of the workshop. Many parents andchildren got the chance to experience the fun of productcreation, thanks to the efforts of Sanyo Electric volunteersincluding product designers.

The 5th Eco & Science Festival was held in March 2008, as anevent to help children develop empathy for both science andthe environment. This time new activities were tried at thissolar energy museum, including sun observations and themaking of dye-sensitized solar cells.

The Youngsters' Science Festival at the Solar Ark*3 is heldevery year as the largest festival of its kind in the Gifu region,featuring a large workshop where children can experience thefun of science. It is popular with children in Gifu and Aichiprefectures. Since 2005, Sanyo also has continued to partici-pate in regional science museum projects supported by theJapan Science and Technology Agency, and in science classessponsored by the Japan Society of Applied Physics, TokaiBranch.

■ Supporting Employee Volunteer ActivitiesBased on management-labor cooperation, Sanyo is creating

work environments that make it easy for employees to activelyparticipate in volunteer activities.

The Volunteer Time Off and Temporary Leave Programswere introduced in 1992 as a specific workplace improvementpolicy. In fiscal 2007, a total of 176 employees took volunteertime off in order to participate in various activities. In fiscal2006, a Silver Ribbon Award system was created to recognizethe social contribution activities of employees. In this way,Sanyo is encouraging the spirit of volunteerism among itsstaff, increasing understanding in the workplace, and creatingenvironments that are easier to work in.●Volunteer time off

If employees wish to participate in volunteer or communityservice activities on a weekday, they can obtain specialpaid days off up to six days a year (or 12 half-days).

●Volunteer temporary leaveIf employees wish to participate in extended-term volun-teer activities, they can take paid leave for one month, orup to one year. (This includes training and actual activitytime for those participating in the Japan Overseas Coop-eration Volunteers program.)

Interacting with Communities through SportsWith the mission of helping children who are the next gen-

eration to find their dreams, and to experience the excitementof sports, Sanyo’s badminton team and Wild Knights rugbyteam are actively engaged in community outreach activities.

In 1992, the badminton team set up a junior badmintonschool, under the guidance of mostly retired team members. Incooperation with local leagues, the members gave classes inelementary school gymnasiums. In addition to contributing tothe sound development of elementary and junior high schoolstudents through a community, school, and corporate partner-ship, Sanyo’s badminton team is actively participating in activi-ties with the aim of increasing the popularity of badminton,including technique training sessions across Japan. The retiredmembers of Sanyo’s Wild Knights rugby team provide coachingat rugby schools for elementary and junior high schoolstudents. The players and staff also meet with children acrossJapan to play tag rugby*4. Through interaction with 13,339children in fiscal 2007, Sanyo’s rugby team has been supportingthe sound development of children, while increasing thenumber of rugby fans and promoting local sport.


*1. Reduce, reuse and recycle*2. World's smallest bipedal humanoid robot, which comes equipped with

eneloop batteries

*4. Instead of tackling, players attempt to pull waist tags from the ball carrier

*3. A nationwide workshop festival held by Japan Science Foundation with thebacking of agencies including the Ministry of Education, Culture, Sports,Science and Technology. The Solar Ark Festival is co-sponsored with theFestival Executive Committee, comprised mainly of the Gifu UniversityFaculty of Education, Ozaki Lab.

*5 Since some projects are ongoing, the number of grants is greater than thenumber of organizations.Creative Kids Workshop

Badminton workshop

Tag rugby

Environmental Classes at Elementary Schools

■ SANYO Think GAIA FoundationFollowing the completion of the Solar Ark solar power gen-

eration system in December 2001, the SANYO EnvironmentalFund was established in April 2002 with the goal of contribut-ing the energy savings generated by the system to variousenvironmental conservation activities. Headquartered at Cor-porate Environment Center, this fund has been offering finan-cial support to worthy environmental activities carried out byvolunteer organizations and NPOs.

In February 2006, the name of the fund was changed to theSANYO Think GAIA Foundation, and its activities wereexpanded to include support for the sound development ofyouth and social education. In the six years since thefoundation’s original establishment, it has given 34 grants*5

totaling about 40 million yen to 20 organizations. Recipientsinclude the Gifu Youngsters' Science Festival, the Gifu EarthEnvironment School, and the Otsu Environmental Forum.

●Through the Eco Education Program for Elementary Schools, environmental classes havebeen given to 6,260 children at 82 schools over two years.

●The SANYO Think GAIA Foundation has given out about 40 million yen in grants over sixyears.

Highlights

SANYO Think GAIA Foundation→　www.sanyo-ecokikin.jp/（Japanese Only）

access

Grants and Donations



■ SANYO GULF FZE (United Arab Emirates)Supporting a used battery collection campaign in elementary schools

Since 2006, Sanyo Gulf, a consumer products sales company,has been supporting a campaign to collect used batteries atlocal elementary schools. The effort is being carried out incooperation with the Emirates Environmental Group, an NGOpromoting environmental protection activities focused on the3Rs (reuse, reduce and recycle), and the activity is alsosupported by local communities and schools. Initial educationis given to elementary schools on the importance of environ-mental protection, and the school that collects the most usedbatteries is given an award on World Environment Day*1. In2007, 561 Kg of used batteries were collected. It is expectedthat the children will continue to improve their environmentalawareness throughthis kind of every-day initiative.

■ SANYO ENERGY (SINGAPORE)　 CORPORATION PTE. LTD. (Singapore)Environmental classes at Japanese schools in Singapore

During November 2007, Sanyo Energy (Singapore), a batterysales company, held environmental classes featuring arechargeable battery that can be reused 1,000 times, at twoJapanese schools in Singapore. Through these classes thechildren were able to give serious consideration to what theycan do personally to help protect the planet. The Singaporegovernment has been promoting awareness-raising activitiesthat encourage citizens to take environmental steps in theirown lives, and has initiated a project to reduce waste. SanyoEnergy (Singapore) decided that it also wanted to helppromote environ-mental awareness inthis country, and willbegin offering envi-ronmental classes tolocal Singaporeanschools in f i sca l2008.

■ Guangzhou Sanyo Car Electronics Co., Ltd.(Guangdong sheng Guangzhou shi)

Maintaining good communication with employeesGuangzhou Sanyo Car Electronics handles everything from

the development and design of automotive multimedia prod-ucts to after-sales service. Every December, the companyconducts an employee feedback questionnaire as part ofmeasures to foster mutual understanding between labor andmanagement. This is based on the knowledge that relation-ships of trust between workers and managers are vital to thebusiness operation.

The survey consists of about 40 questions on issues such asmanagement, occupational health and safety, working condi-tions, understanding between colleagues and superiors,wages, and company welfare programs. Employees rate theirlevel of satisfaction or understanding for each item on a scaleof one to five. Based on the questionnaire results, managerscarry out changes, and implement improvement measuresincorporated into activity guidelines and plans for the follow-ing fiscal year. In this way, the company can address issuesthat seem problematic or where there is low employee satis-faction. When there are inconsistencies between employeeunderstanding and company expectations on managementpolicies, training is carried out in order to eliminate them. Allemployees are able to review the questionnaire results andresponse measures through bulletins on the companyintranet. Theresults of theseinit iat ives aswell as othermeasures havebeen effective.

■ SANYO Energy (Tianjin) Co., Ltd. (Tianjin shi)Environmental classes at a Japanese school in Tianjin

In July 2007, Sanyo Energy (Tianjin), a company that manufac-tures and sells rechargeable batteries, provided environmentalclasses for 81 students in grades 4 through 6, at a JapaneseSchool in Tianjin. The classes conveyed the importance ofprotecting the global environment by showing the features of arechargeable batterythat can be reused1,000 times. Variousbatteries manufac-tured at the Tianjinplant were shown tothe kids, including a

■ SANYO ENERGY (SUZHOU) Co., Ltd. (Jiangsu sheng Suzhou shi)Environmental protection initiatives in business activities

After recognition of its proactive environmental protectioninitiatives by the local environment bureau, in July 2007, SanyoEnergy (Suzhou), a company developing, manufacturing andselling rechargeable batteries, obtained certification as an envi-ronmentally friendly company in Jiangsu province. Thanks toinitiatives to reduce pollutants through the introduction ofadvanced environmental equipment and ecological manage-ment according to ISO14001 criteria, the company is maintain-ing its total emissions of principal pollutants within environmen-tal standards set by the local environmental protection bureau.Moreover, the concentrations of pollutants in gas emissions andwastewater are far below the maximum levels set by China’snational standards.

Through basic activities such as implementing the five pillars oftidiness, orderliness, cleanliness, standardization, and discipline,the environmental management level at this site was increased,resulting in less production waste. All employees also undergoenvironmental training to ensure the steadfast implementationof these efforts. In a question-naire given to employees andresidents living near this site,90% or more were satisfiedwi th the env i ronmentalprotection measures of SanyoEnergy (Suzhou).

Environmental protection initiatives in the local communityThe company also has an Environmental Protection Volunteer

Organization that includes 215 employees. In December 2007,about 80 people participated in a nearby cleanup activity inTaihu Park. In March 2008, about 100 people participated inthe planting of 200 Camptotheca (happy trees) and 100 Japa-nese cherry trees in the same park, with the cooperation oflocal government. The purpose of the event was to improvethe community’s green space and promote friendship betweenChina and Japan. In March 2008, Sanyo Energy (Suzhou)began offering environ-mental classes to localelementary schools. As thefirst initiative of its kind inthis area, it drew a lot inter-est from local governmentand residents.

■ SANYO SEMICONDUCTOR (THAILAND) CO., LTD. (Thailand)Proactive initiatives for environmental protection

A semiconductor company, Sanyo Semiconductor (Thailand),is taking various initiatives to help protect the environment,including the reuse of water based on the Aquacloser siliconwastewater treatment system. The company has also adoptedabsorption chillers*2, and an energy-saving design for its com-pany building. These efforts have been recognized under agovernment award program for corporate initiatives to protectenvironmental quality. Up until fiscal 2005, Sanyo Semiconduc-tor (Thailand) received awards in the four categories of safety,quality, productivity, and the environment, and in fiscal 2007,the company obtained an award in the category of energymanagement. It was even honored with the Prime Minister’sprize for the most outstanding company, selected from amongall the award winners. Every year the company reports its dailyactivities including environmental efforts directly to local stake-holders, and strives tofoster relationships oftrust with them.

■ P.T. SANYO Electronics Indonesia (Indonesia)Participation in an industry-university cooperation program

P.T. Sanyo Electronics Indonesia, a color television manufac-turer, is participating in a government program that aims tostrengthen science and technology cooperation between indus-try and educational institutions, especially in the field ofconsumer electronics. In November 2007, the company beganworking with the engineering department of Gadjah MadaUniversity in the Jogjakarta region. Sanyo Electronics Indonesiareceives student interns from the university to work at its plant,and sends engineer instructors to give classes and technicaltraining in the university and the surrounding area. Industry alsobenefits from the results of research activities by the universi-ties. The instructors and their lectures have been very wellreceived by the university, and during the three years prior to2010, Sanyo Electronics Indonesia will receive over 20 studentinterns, and is plan-ning to give lecturesto a total of about150 students.

CSR Activities Outside JapanSanyo Group companies worldwide are promoting CSRactivities together with stakeholders.

Lecture

Elementary school students that participatedin the collection campaign

Annual presentation to local community members

Environmental class at a Japanese schoolin Singapore

Cleanup at Taihu Park

Certification as an environmentallyfriendly company in Jiangsu province

Environmental class at a Japanese school in Tianjin

Employee recreation

*2. Industrial air conditionerfeaturing clean and energy-saving technology that useswater instead of CFCs as arefrigerant

*1. June 5 has beenestablished by theUN as the day forraising environmen-tal awareness

rechargeable battery that had been cut in half to show the inte-rior. Many of the children responded to the classes by sayingthey would do things in their own lives to help protect theglobal environment.

Asia China



■ SANYO GULF FZE (United Arab Emirates)Supporting a used battery collection campaign in elementary schools

Since 2006, Sanyo Gulf, a consumer products sales company,has been supporting a campaign to collect used batteries atlocal elementary schools. The effort is being carried out incooperation with the Emirates Environmental Group, an NGOpromoting environmental protection activities focused on the3Rs (reuse, reduce and recycle), and the activity is alsosupported by local communities and schools. Initial educationis given to elementary schools on the importance of environ-mental protection, and the school that collects the most usedbatteries is given an award on World Environment Day*1. In2007, 561 Kg of used batteries were collected. It is expectedthat the children will continue to improve their environmentalawareness throughthis kind of every-day initiative.

■ SANYO ENERGY (SINGAPORE)　 CORPORATION PTE. LTD. (Singapore)Environmental classes at Japanese schools in Singapore

During November 2007, Sanyo Energy (Singapore), a batterysales company, held environmental classes featuring arechargeable battery that can be reused 1,000 times, at twoJapanese schools in Singapore. Through these classes thechildren were able to give serious consideration to what theycan do personally to help protect the planet. The Singaporegovernment has been promoting awareness-raising activitiesthat encourage citizens to take environmental steps in theirown lives, and has initiated a project to reduce waste. SanyoEnergy (Singapore) decided that it also wanted to helppromote environ-mental awareness inthis country, and willbegin offering envi-ronmental classes tolocal Singaporeanschools in f i sca l2008.

■ Guangzhou Sanyo Car Electronics Co., Ltd.(Guangdong sheng Guangzhou shi)

Maintaining good communication with employeesGuangzhou Sanyo Car Electronics handles everything from

the development and design of automotive multimedia prod-ucts to after-sales service. Every December, the companyconducts an employee feedback questionnaire as part ofmeasures to foster mutual understanding between labor andmanagement. This is based on the knowledge that relation-ships of trust between workers and managers are vital to thebusiness operation.

The survey consists of about 40 questions on issues such asmanagement, occupational health and safety, working condi-tions, understanding between colleagues and superiors,wages, and company welfare programs. Employees rate theirlevel of satisfaction or understanding for each item on a scaleof one to five. Based on the questionnaire results, managerscarry out changes, and implement improvement measuresincorporated into activity guidelines and plans for the follow-ing fiscal year. In this way, the company can address issuesthat seem problematic or where there is low employee satis-faction. When there are inconsistencies between employeeunderstanding and company expectations on managementpolicies, training is carried out in order to eliminate them. Allemployees are able to review the questionnaire results andresponse measures through bulletins on the companyintranet. Theresults of theseinit iat ives aswell as othermeasures havebeen effective.

■ SANYO Energy (Tianjin) Co., Ltd. (Tianjin shi)Environmental classes at a Japanese school in Tianjin

In July 2007, Sanyo Energy (Tianjin), a company that manufac-tures and sells rechargeable batteries, provided environmentalclasses for 81 students in grades 4 through 6, at a JapaneseSchool in Tianjin. The classes conveyed the importance ofprotecting the global environment by showing the features of arechargeable batterythat can be reused1,000 times. Variousbatteries manufac-tured at the Tianjinplant were shown tothe kids, including a

■ SANYO ENERGY (SUZHOU) Co., Ltd. (Jiangsu sheng Suzhou shi)Environmental protection initiatives in business activities

After recognition of its proactive environmental protectioninitiatives by the local environment bureau, in July 2007, SanyoEnergy (Suzhou), a company developing, manufacturing andselling rechargeable batteries, obtained certification as an envi-ronmentally friendly company in Jiangsu province. Thanks toinitiatives to reduce pollutants through the introduction ofadvanced environmental equipment and ecological manage-ment according to ISO14001 criteria, the company is maintain-ing its total emissions of principal pollutants within environmen-tal standards set by the local environmental protection bureau.Moreover, the concentrations of pollutants in gas emissions andwastewater are far below the maximum levels set by China’snational standards.

Through basic activities such as implementing the five pillars oftidiness, orderliness, cleanliness, standardization, and discipline,the environmental management level at this site was increased,resulting in less production waste. All employees also undergoenvironmental training to ensure the steadfast implementationof these efforts. In a question-naire given to employees andresidents living near this site,90% or more were satisfiedwi th the env i ronmentalprotection measures of SanyoEnergy (Suzhou).

Environmental protection initiatives in the local communityThe company also has an Environmental Protection Volunteer

Organization that includes 215 employees. In December 2007,about 80 people participated in a nearby cleanup activity inTaihu Park. In March 2008, about 100 people participated inthe planting of 200 Camptotheca (happy trees) and 100 Japa-nese cherry trees in the same park, with the cooperation oflocal government. The purpose of the event was to improvethe community’s green space and promote friendship betweenChina and Japan. In March 2008, Sanyo Energy (Suzhou)began offering environ-mental classes to localelementary schools. As thefirst initiative of its kind inthis area, it drew a lot inter-est from local governmentand residents.

■ SANYO SEMICONDUCTOR (THAILAND) CO., LTD. (Thailand)Proactive initiatives for environmental protection

A semiconductor company, Sanyo Semiconductor (Thailand),is taking various initiatives to help protect the environment,including the reuse of water based on the Aquacloser siliconwastewater treatment system. The company has also adoptedabsorption chillers*2, and an energy-saving design for its com-pany building. These efforts have been recognized under agovernment award program for corporate initiatives to protectenvironmental quality. Up until fiscal 2005, Sanyo Semiconduc-tor (Thailand) received awards in the four categories of safety,quality, productivity, and the environment, and in fiscal 2007,the company obtained an award in the category of energymanagement. It was even honored with the Prime Minister’sprize for the most outstanding company, selected from amongall the award winners. Every year the company reports its dailyactivities including environmental efforts directly to local stake-holders, and strives tofoster relationships oftrust with them.

■ P.T. SANYO Electronics Indonesia (Indonesia)Participation in an industry-university cooperation program

P.T. Sanyo Electronics Indonesia, a color television manufac-turer, is participating in a government program that aims tostrengthen science and technology cooperation between indus-try and educational institutions, especially in the field ofconsumer electronics. In November 2007, the company beganworking with the engineering department of Gadjah MadaUniversity in the Jogjakarta region. Sanyo Electronics Indonesiareceives student interns from the university to work at its plant,and sends engineer instructors to give classes and technicaltraining in the university and the surrounding area. Industry alsobenefits from the results of research activities by the universi-ties. The instructors and their lectures have been very wellreceived by the university, and during the three years prior to2010, Sanyo Electronics Indonesia will receive over 20 studentinterns, and is plan-ning to give lecturesto a total of about150 students.

CSR Activities Outside JapanSanyo Group companies worldwide are promoting CSRactivities together with stakeholders.

Lecture

Elementary school students that participatedin the collection campaign

Annual presentation to local community members

Environmental class at a Japanese schoolin Singapore

Cleanup at Taihu Park

Certification as an environmentallyfriendly company in Jiangsu province

Environmental class at a Japanese school in Tianjin

Employee recreation

*2. Industrial air conditionerfeaturing clean and energy-saving technology that useswater instead of CFCs as arefrigerant

*1. June 5 has beenestablished by theUN as the day forraising environmen-tal awareness

rechargeable battery that had been cut in half to show the inte-rior. Many of the children responded to the classes by sayingthey would do things in their own lives to help protect theglobal environment.

Asia China

CSR Activities Outside Japan Independent Review Report


■ SANYO Semiconductor (U.S.A.) Corporation (U.S.A.)Realizing direct dialog between management and employees

Semiconductor sales company, Sanyo Semiconductor (U.S.A.),has held an annual conference every April since 2006. It isattended by management and all employees, creating opportuni-ties for direct dialog between managers and staff. At eachconference, the company president reports on the activities ofvarious departments during the prior fiscal year, and announcesthe activity goals for the new fiscal year. In addition to answeringquestions from employees, recognition is given to those employ-ees that contributed most to the development of the companyduring the past year. At the conference in April 2008, the salesstrategy for fiscal 2008 was announced, and there was a livelyquestion and answer session on customer service measures.

Four employees received commendation for their achieve-ments, namely, construct-ing new business models,cultivating new custom-ers, as well as proposingand e x ecut ing cos tcutting measures.

■ Two companies*1hold an EnvironmentAwareness Day event in Germany

Two Sanyo companies in Germany held a 48-hour Environ-ment Awareness Day event for their employees in November2007. The Munich office of an Italian Sanyo company was alsoinvited to participate, resulting in a total participation of over100 employees. The participants were able to deepen theirawareness of the Sanyo Electric Group’s environmental man-agement policies and measures, as well as the ecologicalperformance of its environmentally-conscious products. Eachcompany shared information on its own unique environmentalactivities, and they confirmed areas where they can worktogether for the construction of an environmental managementsystem (EMS) for Sanyo in Europe. In the future, these compa-nies will improve internal training so that employees can converttheir environmental knowledge into more eco-friendly dailyactivities. Many participants called for the continuation of thisevent, and investigation is being carried out for its expansion toinclude all Sanyo companies in Europe.

■ SANYO CANADA INC. (Canada)Offering environmental classes to local junior high schools

In May 2007, consumer products sales company, SanyoCanada, gave an environmental class to a junior high school inToronto. In addition to telling the students about SanyoCanada’s environmental initiatives, the company instructorused a Canadian version of the text created for Sanyo’s envi-ronmental classes in Japan. The students learned about whatthey can do in their daily lives to help address current environ-mental problems, and were reminded that rechargeablebatteries are one way for them to help protect the global envi-ronment. The class was very well received, and the companywill continue to work with local schools and educational institu-tions to raise inter-est in environmentalprotection effortsamong teachersand students.


Environmental class at a junior high school in Toronto

Environment Awareness Day event

■ SANYO Europe Ltd. (U.K.)Turned off Neon sign in London’s Piccadilly Circus

At 9 p.m. on June 2, 2007, Sanyo Europe, the regional head-quarters in Europe, turned off the neon Sanyo sign in PiccadillyCircus for one hour. This was in support of the Lights OutLondon campaign promoted by a local radio station, with thegoal of increasing the awareness of Londoners for the need toreduce CO2 emissions. The company plans on actively partici-pating in similar initiatives in the future, as a member of theSanyo Group, which aims to become a leading provider of Envi-ronment- and Energy-related products.

Sanyo’s neon sign

Employees receiving commendation

*1. SANYO FISHER Sales (Europe) GmbH, a sales company for LCDprojectors, CCTVs, and TVs, and SANYO COMPONENT EUROPEGmbH, which sells rechargeable batteries and electronic components

North America Europe



■ SANYO Semiconductor (U.S.A.) Corporation (U.S.A.)Realizing direct dialog between management and employees

Semiconductor sales company, Sanyo Semiconductor (U.S.A.),has held an annual conference every April since 2006. It isattended by management and all employees, creating opportuni-ties for direct dialog between managers and staff. At eachconference, the company president reports on the activities ofvarious departments during the prior fiscal year, and announcesthe activity goals for the new fiscal year. In addition to answeringquestions from employees, recognition is given to those employ-ees that contributed most to the development of the companyduring the past year. At the conference in April 2008, the salesstrategy for fiscal 2008 was announced, and there was a livelyquestion and answer session on customer service measures.

Four employees received commendation for their achieve-ments, namely, construct-ing new business models,cultivating new custom-ers, as well as proposingand e x ecut ing cos tcutting measures.

■ Two companies*1hold an EnvironmentAwareness Day event in Germany

Two Sanyo companies in Germany held a 48-hour Environ-ment Awareness Day event for their employees in November2007. The Munich office of an Italian Sanyo company was alsoinvited to participate, resulting in a total participation of over100 employees. The participants were able to deepen theirawareness of the Sanyo Electric Group’s environmental man-agement policies and measures, as well as the ecologicalperformance of its environmentally-conscious products. Eachcompany shared information on its own unique environmentalactivities, and they confirmed areas where they can worktogether for the construction of an environmental managementsystem (EMS) for Sanyo in Europe. In the future, these compa-nies will improve internal training so that employees can converttheir environmental knowledge into more eco-friendly dailyactivities. Many participants called for the continuation of thisevent, and investigation is being carried out for its expansion toinclude all Sanyo companies in Europe.

■ SANYO CANADA INC. (Canada)Offering environmental classes to local junior high schools

In May 2007, consumer products sales company, SanyoCanada, gave an environmental class to a junior high school inToronto. In addition to telling the students about SanyoCanada’s environmental initiatives, the company instructorused a Canadian version of the text created for Sanyo’s envi-ronmental classes in Japan. The students learned about whatthey can do in their daily lives to help address current environ-mental problems, and were reminded that rechargeablebatteries are one way for them to help protect the global envi-ronment. The class was very well received, and the companywill continue to work with local schools and educational institu-tions to raise inter-est in environmentalprotection effortsamong teachersand students.


Environmental class at a junior high school in Toronto

Environment Awareness Day event

■ SANYO Europe Ltd. (U.K.)Turned off Neon sign in London’s Piccadilly Circus

At 9 p.m. on June 2, 2007, Sanyo Europe, the regional head-quarters in Europe, turned off the neon Sanyo sign in PiccadillyCircus for one hour. This was in support of the Lights OutLondon campaign promoted by a local radio station, with thegoal of increasing the awareness of Londoners for the need toreduce CO2 emissions. The company plans on actively partici-pating in similar initiatives in the future, as a member of theSanyo Group, which aims to become a leading provider of Envi-ronment- and Energy-related products.

Sanyo’s neon sign

Employees receiving commendation

*1. SANYO FISHER Sales (Europe) GmbH, a sales company for LCDprojectors, CCTVs, and TVs, and SANYO COMPONENT EUROPEGmbH, which sells rechargeable batteries and electronic components

North America Europe

Published in October 2008

[email protected]://www.sanyo.com/environment/en/


Corporate Environment CenterEnvironmental Management H.Q.


CSR DepartmentCorporate Communications H.Q.

5-5, Keihan-Hondori 2-Chome, Moriguchi City,Osaka 570-8677, Japan

It is necessary that about two-thirds of the carbondioxide emitted in Japan be absorbed by domesticforests to attain the reduction target of the KyotoProtocol to “reduce greenhouse effect gas emis-sion by 6%.” Proactive use of domestic timbercontributes to forest cultivation where CO2 isabsorbed. The paper used for this booklet is madefrom domestic timber and thus contributes toexpanding the carbon absorption capability of thedomestic forest.

This booklet is printed using a waterless processthat does not emit harmful waste liquid into theenvironment.

Environmentally-friendly ink that employs soy beanoil solvent is used.

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