Table of Contents Message from the Management Managing Director 4 Environmental Management Representative 5

Company Profile 6

Battery Manufacturing Process 6

SETS and the Environment SETS Environmental Policy 8 Environmental Management Structure 9 Environment & Safety Audits 10 Overview of SETS Environmental Impacts 11 Compliance to Legal and Other Requirements 12

Employee Involvement Social Activities 16 Occupational Health & Safety 17

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Managing Director The year 2008 has been a big milestone for this company. We stopped Trinitron Cathode Ray Tube (CRT) production and transformed ourselves into making a totally different and new product – lithium-ion rechargeable battery cells. From an environmental perspective, this change is significant in two respect. From a site point of view, the new battery production process generate less environmental impact as compared to the previous operation. As such, battery cell production generate a smaller environmental footprint. With Sony at the forefront of Lithium Ion rechargeable battery technology, it is important we design batteries which can be recharged repeatedly and for more cycles than current ones. This way, the battery cells need not be replaced so frequently, thus leading to lesser raw materials being used and also waste generated at the end of its product life cycle. I am pleased to present this first CSR (corporate social responsibility) report for SETS. We have previously been publishing such reports since 2000. I hope you find this report informative. I am excited at the dawn of this new business for SETS and I would like to thank our partners for their unfailing support over the years. I look forward to working with you for many more years to come.

Tetsuro Shibasaki

Managing Director of SETS

September 2009

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Sebastian Yeo

Environmental Management Representative of

SETS

September 2009

EMR Being an environmentally proactive and socially responsible company do not happen overnight. Even though we have just started life as SETS, many of our practices are a continuation of the good work that has been put into this factory since we started operation in 1992. The company has invested considerably in many environmental technologies over the year. Some prominent examples that come to mind include implementing a large scale waste water recycling operation, conversion of our chillers to more energy efficient type and switching over to the use of natural gas. All these have allowed us to reduce our environmental impact over the years and some of these technologies continue to benefit us in the new business. Today, we are still actively focused on reducing the factory’s carbon footprint. As you read this first report for the new business, you will find that the company also places equal importance to safety and social activities. Safety is something we never compromised, as evident by a clean safety record in fiscal year 2008. In this tough economic times, I also believe we should still be firmly engaged with the community we operate in and do our best to give back to the society and aid the needy. I hope you find this report an informative and entertaining read and I welcome any feedback you have on our activities and how we can further improve.

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Company Profile Incorporated in 1990, SETS started operation in 1992 as Sony Display Device (SDS) producing Sony’s renowned Trinitron Cathode Ray Tube (CRT) television. This production run continued until January 2008 when the 70th million CRT was produced. Total production in SDS over 15 years accounted for about 25% of total Sony CRT production. Following the cessation of CRT production, the factory was transferred from the TV to the Energy Group and converted for battery cell production. Groundwork formally started in late 2007 with machine installation at the beginning of 2008. In April 2008, the former SDS was rejuvenated as Sony Electronics Singapore, Energy Technology Singapore (SETS) and the first battery cell successfully rolled out from production in August 2008. At present, SETS has an annual capacity of 6 million cells.

Battery Manufacturing Process The Lithium Ion battery cell manufacturing process consists of a few key processes. In the slitting process, the electrode for the battery cell is cut to the required width depending on the size of the cell to be made and rolled up into “pancakes”. Metal tabs are then welded at the tab welding process. This is followed by gel treatment. At the winding and assembly process, the electrodes and separator are winded into cell shape, compressed, placed into an aluminum pack and heat pressed to seal the cell. It is then placed into a charge and discharge process to ensure the electrical characteristics of the cell is within specification. Finally, the cells will be packed and shipped to our customers for assembly into the final battery pack.

SDS Final CRT Ceremony on 1st January 2008

Opening Ceremony of SETS on 28th Aug 2008

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SETS Environmental Policy

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Environmental Management Structure Managing a wide range of environmental activities in an organization can be a daunting task and requires good co-ordination between groups of staff from different functions. To achieve all these in a systematic manner, SETS established an environmental management structure within the organization.

The organization comprises four core groups, namely Site Environment, Product Environment, Green Procurement and EMS Workgroup. With the Managing Director as the head of the organization, the EMR is tasked to ensure Sony GEMS and ISO 14001 requirements are maintained and the company’s objectives and targets met. The Site Environmental function (Technical Information Department) is responsible for Sony GEMS and ISO 14001 system maintenance and improvement. The department is also responsible for scheduling internal audits and communication between SETS and the regional environmental office (REO) and Sony Corporation. The Product Environment function (Cell Technology Department’s Incoming QA function) is responsible for carrying out XRF (X-ray fluorescence) measurements on the designated parts and materials as defined by Sony rules so as to ensure parts and materials from suppliers are free of banned chemical substances. The Green Procurement function (Procurement Department) is responsible for overseeing the Green Partnership program. The department audit suppliers to certify them as Sony Green Partners as well as periodic assessments and re-certification. The EMS workgroup function is responsible for carrying out the environmental objectives and targets of the company. Presently, SETS focus is on energy conservation and this activity is spearheaded by the Facilities Department.

SETS EMS Organisation Structure

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Environment & Safety Audits In 2003, Sony Corporation established the group-wide, integrated global environmental management system (GEMS). This system integrates Sony corporate requirements with ISO 14001 and consolidate headquarters with all business divisions and sites in terms of environment. The objective of GEMS is to ensure environmental activities in Sony are managed consistently and as a whole group, especially with respect to product environmental compliance. SDS successfully obtained GEMS certification in October 2004. In 2005, SDS converted to the 2004 version of ISO 14001. In October 2008, the GEMS ISO certification was successfully audited by BV Certification and transferred to SETS with no nonconformance issued. Annually, internal and external audits are conducted to monitor SETS environmental and occupational health and safety performance. In FY08, SETS has 5 environment and 32 safety internal auditors. These auditors are qualified personnel who has undergone external audit training.

Environment Audits Frequency ISO 14001 Internal Audit This is an integrated audit where ISO 9001 & ISO 14001 requirements are audited.

Once a year

GEMS (Global EMS) & ISO 14001 Surveillance Audit This external audit is conducted by BV Certification, an external certification body.

Once every 2 years

Occupational Health & Safety Audits Frequency OHSAS 18001 Internal Audit This is an audit program where elements of OHSAS 18001 are audited.

Once a year

OHSAS 18001 Surveillance Audit This external audit is conducted by SPRING Singapore, an external certification body.

Once a year

Common Audits Frequency Corporate Audit This audit is conducted by Sony Corporation and the Regional Environmental Office to check for conformance to Sony Corporation guidelines on environment, safety and occupational health.

Scheduled by Sony HQ

Customer Audit This audit is conducted by customers whom SETS battery cells are sold to. It covers all aspect of SETS operation, including quality, environment and safety.

Dependent on individual customer

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Overview of SETS Environmental Impacts Battery manufacturing causes impact on the environment. SETS identifies the environmental aspect of its operation through work site inspection, studying the IPO (Input Process Output) Diagram, examining records and staff interview. Aspects are also considered from the viewpoint of legislation, usage and corporate requirements to determine those having significant impact on the environment. Programmes are then put in place to control and lessen these impacts. In SETS, factors which have significant impact on the environment include energy and raw material usage. In FY08, SETS uses 15 million kWh of electricity, 46,981 m3 of purchased water to manufacture the Lithium Ion battery cells. As a result, 11,538 tons of CO2 were emitted due to the energy usage and 2,073 tons of waste generated.

Energy Consumption Purchased Water Waste Chemical Substances

Electricity LPG Fuel Oil Natural Gas

Production use

Non-production use

Waste Generated

Recycled Waste Class III emission

tons-CO2 tons-CO2 tons-CO2 tons-CO2 m3 m3 tons % tons

9,646 29 15 1,848 31,218 15,763 156 96 0.4822

11,538 46,981

CO2 = carbon dioxide (a greenhouse gas) & 1 ton = 1,000 kg Energy consumption is calculated collectively as CO2 emission. CO2 emission is obtained by multiplying total

electricity and fuel (diesel oil, LPG and natural gas) consumption by a CO2 conversion coefficient. In FY08, Facilities department implemented a series of energy conservation programmes which led to a reduction in CO2 emission by 630 tons. Some of these activities included turning off lightings in unnecessary and/or unused areas of the factory, compressed air pressure reduction, turning off the dryer and air con during period of non-use and long weekends without compromise to product quality and chiller warm up reduction. In addition, many of the energy conservation activities implemented during the CRT era continues to stand SETS in good stead, such as switching over to natural gas and changing to a higher efficiency chillers.

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Compliance to Legal and other Requirements SETS makes all efforts to ensure compliance with Singapore laws and regulations. In the areas of environment and safety, the key areas include environment pollution control, waste disposal handling and work place management. The results in Tables 1 to 5 show the level of air emission, water samples from cooling tower, storm water discharge and boundary noise as compared to the permissible level allowed by national standards. Air Emission Tables 1 and 2 show the annual air emission measurements conducted in July and August 2008 by a third party accredited external laboratory. The result presented is the maximum readings obtained among locations as shown below.

Substances Emission Limits (mg/Nm3) Boiler Stack RTO Exhaust Compliance to

legislation

Carbon Monoxide 625 2.4 8.02 (max)

Oxides of nitrogen 700 113.4 7.51

Particulate substances 100 Less than 1 4.13

☺ Satisfactory

RTO = Regenerative thermal oxidizer All results are in mg/Nm3. Table 1 : Air Emission Measurement Result

Emission Limits Results Compliance to legislation

Smoke Opacity Ringelmann No. 1 or equivalent less than 1 ☺

Satisfactory Table 2 : Smoke Opacity Result Legionella Bacteria Count (Cooling Towers) Regular maintenance and checks on cooling towers in SETS are carried out in accordance with the Ministry of the Environment’s Code of Practice on Legionella Bacteria Control. The measurement taken for Standard Plate Count is conducted monthly, while Legionella Bacteria Count is conducted quarterly. The results in Table 3 below show the cooling towers in SETS to be in compliance. The Standard Plate Count result shown is the maximum reading obtained during the last fiscal year.

Type of Measurement Allowable limit Results Compliance to legislation

Standard Plate Count less than 100,000 10 (max)

Legionella Bacteria Count less than 10 Not Detected

☺ Satisfactory

Table 3 : SETS Cooling Tower Measurements

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Stormwater Discharge Samples are collected from the storm water drains around the factory annually to check for any contamination. Five measurement points were selected for analysis. These analysis are carried out by a third party accredited external laboratory.

Effluent Parameters Allowable Limits

Maximum [5 locations]

Compliance to legislation

pH value (25±1oC) 6 – 9 7.7

Temperature of discharge 45oC 25oC Colour (Lovibond) 7 <1 Biochemical Oxygen Demand 50 3 Chemical Oxygen Demand 100 30 Total Suspended solids 50 <1 Oil & Grease (Total) 10 <1 Oil & Grease (Hydrocarbon) 10 <1 Phenol 0.2 0.01 Detergents 15 <1 Cyanide 0.1 <0.01 Sulphide 0.2 <0.01 Chlorine (Free) 1 0.08 Phosphate 5 <0.1 Mercury 0.05 <0.01 Silver 0.1 <0.01 Arsenic 0.1 <0.01 Boron 5 <0.1 Barium 2 <0.1 Cadmium 0.1 <0.01 Chromium 1 <0.01 Copper 0.1 0.03 Iron 10 0.2 Manganese 5 <0.1 Nickel 1 <0.01 Lead 0.1 0.01 Selenium 0.5 <0.01 Zinc 0.39 0.43 Metals (toxic) in Total 0.44 0.46

☺ Satisfactory

Table 4: Storm water quality around SETS premises. All results are in mg/L except for pH or otherwise stated.

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Boundary Noise SETS is located in the western part of Singapore away from residential area. It is surrounded by factories to the east and south of its perimeter. The Tuas Fire Station and a factory are located to the west. Screening of noise levels was conducted along the site boundary before the selection of a suitable location for 24-hour equivalent continuous noise monitoring. These measurements are conducted annually by accredited external party. Based on the results from the noise screening, a sampling location where noise is of the greatest concern will be chosen for a 24-hour equivalent continuous noise monitoring.

Max. Permissible Noise Levels, dB(A) (Affected Premises: Factory)

Noise Level, dB(A) Overall Results

Compliance to legislation

75 (Day) (0700hrs – 1150hrs) 59.2 – 67.0

75 (Day) (1220hrs – 1900hrs) 58.9 – 69.1

70 (Evening) 54.2 – 64.9

65 (Night) 47.6 – 63.3

☺ Satisfactory

Table 5 : Boundary Noise Measurement Result at SETS Product Environmental Compliance Instructions In addition to complying with local legislation, SETS also received product environmental compliance instructions from Sony HQ, her parent company Device Solutions Business Group (DSBG) and the Regional Environmental Office (REO). These instructions are typically applicable to the parts and materials received as well as the products shipped out of SETS. SETS is also in compliance with these instructions wherever they are applicable. Customer CSR requirements SETS underwent a customer audit in July 2008. A portion of this audit focuses on CSR activities, including environment and occupational health and safety. SETS successfully passed this audit with no nonconformance. SETS first customer audit (July 2008)

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Social Activities SETS believes in maintaining a strong bond with the community. Sustainable development is achieved by the organization, community and environment existing in balance and harmony. In fiscal year 2008, the following social activities were carried out.

Water For Life The annual CSR event was organized on Saturday, 28 March 2009. Entitled “Water For Life”, the event involves participation from all Sony operations in Singapore, including SES (of which SETS is a part of), SEAP, Sony Picture Entertainment Networks Asia, Sony Ericsson, and Sony Chemicals. The event this year is held at the newly opened Marina Barrage, the same venue as the previous year’s event. When Sony visited the venue last year, the barrage was still under construction. Having the event there again this year allowed us to appreciate the engineering feat involved while also learning about the importance of water conservation at the same time. With over 100 Sony employees (including 15 from SETS) and 100 school children participating, the program included a tour of the gallery to learn about the importance of water conservation and the operation of the barrage itself. After the tour, participants were also taught how to perform water sampling to evaluate water quality by the Waterway Society of Singapore (WWS).

Christmas Make a Wish Programme Christmas is a season of giving and good cheer. For this year, the annual event by saw SETS fulfilled the wishes of children’s from Association for persons with Special Need (APSN) Katong School. These wishes were hung on a Christmas tree for a few weeks and employee picked the ones whose wishes they would like to fulfill. The Sports and Recreation Committee (SRC) representatives delivered 38 presents to the children shortly before Christmas. Food Delivery A food and gift delivery was organised in December 2008 in aid of the Boys’ Brigade Sharity Gift Box. Altogether, 11 staff participated in this event and delivered 100 packages to the Telok Blangah area together with the Boys’ Brigade.

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Heartstrings This 2.5km HeartStrings Walk was participated by all the Sony companies in Singapore in support of the Community Chest at Esplanade park in August 08.

Donations

SETS staff also actively contributed cash and kind.. More than S$26,000 in cash donations were collected to help the victims of the Myanmar Cyclone and China Earthquake. The company also participated in the groupwide Sony South Africa Mobile Library Project, collecting donations of books from Sony employees around the world to be lent to students in the rural parts of that country.

SHARE Programme The Community Chest has been the recipient of contributions by SDS employees since 1994. The generosity of our employees has continued to this day in SETS too. In FY08, 98% of our staff contributed to the SHARE programme. This amounted to more than S$20,000 in contribution

Occupational Health & Safety In fiscal year 2008, two fire drills were completed in August 08 and February 09. One of the drills is a localized drill involving the night shift workers to test their response level. The second one is a full scale fire drill involving the entire site during office hours. In this drill, members of the Singapore Civil Defence Force participated and provide valuable advice non emergency response. A chemical spill drill was also conducted in June 08 at the chemical store to allow the company’s chemical spill team to practice their response procedures. SETS completed FY08 without any workplace accidents. Altogether, there was 653,571 man-hours worked. The statistics are as shown below. Workplace Injury Statistics

Man hours Accident with MC

Frequency Rate

Severity Rate

FY08 652,571 0 0 0 (FY08 data calculated as at end Mar 08)

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About This Report SDS started publishing environmental & social report in April 2000 to disclose environmental information to our community and stakeholders. This is the company’s first official report under the new SETS operation. This edition covers activities carried out in Fiscal Year (FY) 08, which runs from April 2008 to March 2009. In Sony, disclosure of CSR (corporate social responsibility) information is carried out as part responsibility of to the society. However, confidential and proprietary information is not disclosed in this report.

Report Preparation This edition of the Environmental & Social Report was published on 30 September 2009. All the data presented are from April 2008 to March 2009 unless otherwise specified.

Contact Person for Inquiry For further queries / clarifications, kindly reach us at: Address: 1 Tuas Road Singapore 638481 Telephone: (65) 6864 6561 Facsimile: (65) 6861 8155 Email: tis.sds@ap.sony.com Contact persons: Sebastian Yeo Environmental Management Representative Chan Pheng Hwa Manager

Revision Any amendments to this report after the date of printing will be reflected in the next edition of the Environmental & Social Report.

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Sony Electronics (Singapore) Pte Ltd Energy Technology Singapore

Copyright © 2009 by Sony Electronics (Singapore) Pte Ltd Energy Technology Singapore. All rights reserved. Information contained in this publication is correct as at the time of printing. Company Registration Number 199000682N

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