Environmental Report Committed to People, Committed to the Future

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2013 Environmental Report Committed to People, Committed to the Future.

1-1, Shibaura 1-chome, Minato-ku, Tokyo, 105-8001, Japan Contacts : Corporate Environment Management O ce Tel : +81-3-3457-2403 Fax : +81-3-5444-9206 Inquiry page on Toshiba website URL : http://www.toshiba.co.jp/env/en/contact/ The report is available on the Toshiba website. URL : http://www.toshiba.co.jp/env/en/

Toshiba is conducting an online questionnaire. Please give us your opinions or comments on the report for future reference.

URL : https://www.webcom.toshiba.co.jp/csr/env.php 1st Edition, published in October 2013 Toshiba Group Business Overview

Company Overview (as of March 31, 2013)

Company name Toshiba Corporation CSR-related international charters/guidelines Toshiba endorses Headquarters address 1-1, Shibaura 1-chome, United Nations Global Compact Minato-ku, Tokyo Global Reporting Initiative (GRI) Founded July 1875 Electronic Industry Code of Conduct (EICC) Paid-in capital 439.9 billion yen Number of shareholders 446,001 Consolidated net sales 5,800.3 billion yen Number of shares issued 4,237,600,000 shares Number of consolidated subsidiaries 590 (183 in Japan, 407 overseas) Number of employees 206,087 (consolidated) Number of a liates accounted for by the equity method 200 Stock exchange listings Tokyo, Nagoya, London

Financial Results (Consolidated)

Net Sales Operating Income & Net Income Net income

(billion yen) (billion yen) Operating income 8,000 300 240.3 202.7 194.3 6,512.7 6,398.5 6,291.2 6,100.3 5,800.3 200 125.2 137.8 70.1 77.5 6,000 100 19.7 0 4,000 –100 2,000 –200 –300 –233.4 0 –343.6 2008 2009 2010 2011 2012 (FY) –400 2008 2009 2010 2011 2012 (FY) Sales by Business Segment (FY2012) Sales by Region (FY2012) Number of Employees by Region (FY2012) Europe*2 Central & South America Home appliances Other Europe Other 11,562 6,711 591.5 310.7 726.4 320.5 (5.6%) (3.3%) (5%) (13%) (6%) (10%) North America Africa 22,347 835 (10.8%) (0.4%) Social Electronic infrastructure Japan China Japan devices 2,564.2 North America 2,627.2 22,889 113,486 1,335.3 (41%) 1,057.8 (45%) (21%) (11.1%) (55.1%) Digital (18%) products Asia & Asia*1 & *1 Excluding Japan 1,432.7 Oceania Oceania and China (23%) 1,068.4 28,257 *2 Including Russia (18%) (13.7%) Total: 5,800.3 (billion yen) Total: 5,800.3 (billion yen) Total: 206,087 (employees)

SCiBTM rechargeable battery

Electronic book reader LCD TV Photovoltaic power MFP generation system

Blu-ray disk recorder Thermal power generation turbine

Social © TOKYO-SKYTREE Ultrabook™ REGZA tablet Digital products infrastructure High-speed, high-resolution Elevator for the CT scanner TOKYO SKYTREE® Main Products and Services Electronic Home devices appliances

NAND flash drive Storage devices Home (HDDs and SSDs) Heat source system with air-cooled heating pumps storage battery CMOS image sensor Washing machine with dryer

Energy monitor Water consumption Gas consumption 10:48 Nov. 1 (Thurs.) (46 yen) (168 yen)

(Consumption from 9:00 to 10:00) Charging Electricity sold Electricity purchased

Electricity generated Electricity used

Battery remaining

Discharging Today’s data Current values

Homepage Detailed Graph Calendar Power Download Help High-efficiency information consumption magnetron FlashAir SD card HEMS Refrigerator/freezer LED light

Please refer to the Toshiba Annual Report 2013 for detailed business and financial information. This information is also available at the following website: http://www.toshiba.co.jp/about/ir/index.htm 01 Toshiba Group Environmental Report 2013 Editing Policy Contents

Toshiba Group has published the Environmental Report since Chapter Vision and Strategies FY1998 (From 2004 to 2007, environmental information was 1 CEO Commitment ………………………………… 03 provided in the CSR Report). This report is published to provide Toshiba’s Initiatives for Reconstruction and Power detailed environmental information on Toshiba Group to all Saving ……………………………………………… 05 stakeholders of the Group. The content of this year’s edition was Toward Environmental Vision 2050 ……………… 07 Formulation of the Environmental Grand Design… 09 expanded to include information on the progress of the Fifth Progress in the Fifth Environmental Action Plan… 11 Environmental Action Plan, as well as on new initiatives to Toshiba Group's Initiatives for Smart Communities mitigate climate change and use resources e ectively at produc- to Realize a Sustainable Society…………………… 13 tion sites and at the product level, conserve biodiversity and Special Feature: Conservation of Biodiversity …… 17 promote environmental communication, and step up environmental management. At the same time, to contribute to reduc- Chapter Expansion of ECPs tion in environmental impacts, the report will be published only 2 Creation of Products with the Highest Level of on Toshiba’s website with its print version not issued. Additional Environmental Performance ……………………… 23 information will also be provided there as it becomes available. Creation of Excellent ECPs ………………………… 25 Mitigation of Climate Change ……………………… 27 Mitigation of Climate Change by Energy Technologies ……………………………………… 29 Efficient Use of Resources ………………………… 32 Providing detailed environmental information Management of Chemicals in Products ………… 35 http://www.toshiba.co.jp/env/en/index.htm Product Eco-efficiency …………………………… 37 Environmental Report 2013 and website for environment Chapter High-e ciency Manufacturing 3 Pursuing the world's lowest level of environmental impacts …………………………………………… 39 Mitigation of Climate Change …………………… 41 Topics: Making CO2 emissions in the supply chain visible ……………………………………………… 43 Topics: Energy-saving diagnosis ………………… 44 Effective Use of Resources ………………………… 45 Management of Chemical ………………………… 47 We provide more detailed information on our environmental website. Toshiba "eco style" website Response to Environmental Risks ………………… 49 http://ecostyle.toshiba.com Recycling of End-of-Life Products ………………… 51

Chapter Providing nancial information Compliance and Management http://www.toshiba.co.jp/about/ir/index.htm 4 Aiming to become the most excellent company in Annual Report 2013 and website for investor relations environmental management……………………… 54 Environmental Management Structure…………… 55 Environmental Education/Human Resources Development ……………………………………… 56 Environmental Audits……………………………… 57 Performance Evaluation…………………………… 58 Environmental Accounting ……………………… 59

Chapter Reputation 5 Promoting environmental communication to connect people …………………………………… 61 Reporting on CSR activities (social and environmental) in general Launching of "Toshiba Group Global Environmental http://www.toshiba.co.jp/csr/en/index.htm Action" …………………………………………… 62 CSR Report 2013 and website for CSR activities Advancing with Customers ……………………… 63 Partnerships ……………………………………… 64 Advancing with Stakeholders …………………… 65 Third-Party Evaluation …………………………… 67 Evaluation by External Parties (FY2012 results) …… 68 Chapter 6 Advancing to the Next Stage New stage of environmental management ……… 69 Overview of Environmental Impacts……………… 71

Organizations covered Reference guidelines In principle, this report covers Toshiba Group (Toshiba Corporation and its 590 ·Global Reporting Initiative (GRI) consolidated subsidiaries in Japan and overseas). In cases where the report Sustainability Reporting Guidelines, Third Edition (G3) covers entities other than Toshiba Group, the individual entities are indicated. Note: The comparative table for GRI guidelines is posted on Toshiba’s website. * In this report, “Toshiba” refers to Toshiba Corporation. ·Ministry of the Environment of Japan Reporting period Environmental Reporting Guidelines 2012 This report focuses on the results of activities in FY2012 (April 1, 2012 to March Environmental Accounting Guidelines 2005 31, 2013), but includes some activities continuing from the past and some more recent activities. Ensuring universal design in terms of color vision Publication We made e orts to ensure the text and charts herein are easy to read for as many The current issue was published in September 2013 (The publication of the next readers as possible irrespective of di erences in color vision. For details, please visit issue is scheduled for August 2014; the previous issue was published in Septem- our environment website. ber 2012). Signi cant change during the reporting period This report includes descriptions of Toshiba’s future plans and strategies, as well as In August 2012, upon the U.S.-based IBM Corp.’s transfer of its business to prospects of its nancial results. These descriptions and prospects are based on Toshiba Tec Corp., Toshiba Tec established Toshiba Global Commerce Solutions Disclaimer matters decided and opinions formed using information that is obtainable at this Holdings Corp., a holding company, and Toshiba Global Commerce Solutions, time. Inc., a U.S. business corporation, and Toshiba Global Commerce Solutions started operation. Toshiba Group Environmental Report 2013 02 chapter chapter1 Vision and Strategies 1 CEO Commitment Vision and Strategies

We aim to become one of the

world’s foremost Expansion of ECPs eco-companies through our four strategies by integrating business management and environmental management. High-e ciency Manufacturing High-e ciency

Introduction Continuing to support recovery from the Compliance and Management After I joined the company, I worked mainly in the production divi- Great East Japan Earthquake sion and the procurement division, which purchases materials and Toshiba Group has channeled extensive resources into components from companies outside Toshiba Group. I was stationed supporting recovery from the devastating earthquake and outside Japan—including the Philippines, the United Kingdom, and tsunami that hit Tohoku on March 11, 2011. In particular, the United States—for a total of 14 years. In the Philippines, where I as one of the enterprises in the nuclear power industry, we worked for four years (1996-2000), I led efforts to obtain ISO 14001 have made strenuous efforts to ensure the stabilization of (international standards for environmental management) certifi- the Fukushima Daiichi Nuclear Power Station and advance its cation in order to accelerate environmental initiatives at the local decommissioning in cooperation with the government and production site. At that time, in emerging countries, a higher priority Tokyo Electric Power Company, Inc. For the treatment of con- was still placed on the economy, and environmental issues were taminated water, we have contributed to the continuous and not taken as seriously as they are today. But out of necessity to take stable operation of SARRY™—a retained contaminated water immediate action based on taking a hard look at what things would disposal system. Also, we have completed the installation of be like in the future, I expanded activities to involve the entire site MRRS™—a set of equipment to remove about 60 types of ra- through daily discussions with local employees, and this led to our

dioactive nuclides—and its trial operation is now underway. Reputation obtaining ISO 14001 certification. We have also developed robots to inspect and investigate Immediately after I became director in charge of environmental the inside of reactor buildings where human works are quite affairs at Toshiba’s head office in 2011, I started to develop a grand difficult and started to use them in such places. We further design aimed at becoming one of the world’s foremost eco-com- developed Gammasight™—a gamma camera capable of panies by 2015. We established specific performance domains that making the effects of radioactive rays visible—and technolo- should be achieved in 2015 as we pursue our vision for 2015 as one gy for disposing of contaminated water, soil and ashes from of the world’s foremost eco-companies, and formulated four strat- incinerators in a form applicable for practical use and pro- *1 egies to achieve this vision and the Fifth Environmental Action posed to utilize them for decontamination in Fukushima and *2 Plan —a specific plan to implement the strategies. other areas. Advancing Stage to the Next Today, as seen by the frequent occurrence of disasters due to On the other hand, in order to help rebuild the devastated abnormal weather around the world, problems are surfacing that areas in eastern Japan, we are actively proposing to build appear to be attributed to the effects of climate change. Mean- smart communities that meet local needs. In addition to a while, in emerging countries, the problems of waste generated as smart-community project in Ishinomaki City, Miyagi Prefec- a result of economic development—as well as problems arising ture, we are supporting a rebuilding project in Iitate Village, from air and water pollution—are becoming increasingly serious; Fukushima Prefecture—which is based on its New Madeina we cannot afford to put off taking measures to cope with these Village Plan—as well as projects to build a large set of photo- environmental issues. I believe that the quickest way to solve these voltaic power plants and smart communities in Minamisoma problems is for each and every one of Toshiba employees world- City, Fukushima Prefecture. We will contribute to the recov- wide to share the same mind-set and work together with a sense ery of Japan by pushing for the creation of sustainable, ener- of solidarity. gy-saving communities mainly through actively introducing *1 Strategy to expand ECPs, high-efficiency manufacturing strategy, compliance and management strategy, and reputation strategy renewable energy and energy management systems while *2 Toshiba Group’s environmental action plan that covers the four years from FY2012 to respecting characteristics of the region. FY2015

03 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

ergy-saving diagnosis, making production adjustments, and Aiming to become one of the world’s fore- taking other measures, Toshiba Group reduced its total green- most eco-companies through the grand de- house gas emissions to less than half of the FY1990 level (2.76 sign’s four strategies million tons). We will strive to both increase productivity and Vision and Strategies Toshiba Group aims to become one of the world’s foremost reduce environmental impacts in all three areas: mitigation of eco-companies as it upholds its unified global brand “eco- climate change, effective use of resources, and management style” and strives to achieve a world in which people lead of chemicals. Thus we aim to increase eco-efficiency to 1.5 affluent lifestyles in harmony with the Earth. times the FY2000 level and pursue the world’s lowest level of Last year, we announced our Fifth Environmental Action Plan environmental impacts by FY2015. based on the four strategies developed to achieve this aim: 1) strategy to expand ECPs, 2) high-efficiency manufacturing Compliance and Management Strategy strategy, 3) compliance and management strategy, and 4) rep- Toshiba Group is striving to bolster its environmental man- utation strategy. In this Action Plan, we are further integrating agement by developing human resources responsible for business management and environmental management in all environmental initiatives and improving its environmental business areas, and have set specific goals to ensure continu- management systems on an ongoing basis. Under its unique Expansion of ECPs ous business growth and reduce environmental impacts. in-house Environmental Audit System covering company Strategy to Expand ECPs managers, product business divisions, and production sites, the Group reviews the progress in the Environmental Action Toshiba Group is carrying out two Green initiatives: 1) Green- Plan and ensures compliance with relevant laws and regula- ing of Products, in which we aim to achieve the highest level tions. In order to raise the level of environmental initiatives, of environmental performance for all products we develop we also reconsider our environmental training programs ac- and reduce environmental impacts throughout product life cording to the managerial levels targeted and the expertise cycles, and 2) Greening by Technology, in which we aim to required every year. Currently, as part of our new undertak-

provide a stable power supply and mitigate climate change ings, we are developing environmental leaders at each site, Manufacturing High-e ciency on a global scale through the low-carbon energy technolo- and in FY2012, 230 personnel were registered as Toshiba gies. eco-style leaders. In the years to come, we will step up envi- In the Greening of Products initiative, we are accelerating ronmental management globally with the aim of registering the development of localized products to meet the specific 2,000 personnel as such by FY2015. needs of different countries and regions, including developed countries where various energy-saving initiatives have Reputation Strategy been implemented, and developing countries where environ- Toshiba Group is working to strengthen its relationships of mental impacts are likely to increase as a result of economic trust with its stakeholders through environmental communi- development. Consequently, in FY2012, our sales of Excellent cation, conservation of biodiversity and other initiatives and ECPs, which achieve the highest level of environmental per- enhance its environmental image. In FY2012, we advanced Compliance and Management formance, were 668.8 billion yen and use of these products efforts to protect rare animals, insects and plants by effec- resulted in 6.8 million tons of CO2 emissions reductions. Both tively utilizing the grounds of our production sites. In terms of these results exceeded the initial plan. In the future, we of environmental communication, we opened “Toshiba Ba- aim to achieve 1.8 trillion yen in Excellent ECP sales and 15 ton”—a website that involves our employees worldwide. By million tons in CO2 emissions reductions from Excellent ECPs FY2015, we plan to globally establish ecosystem networks by FY2015, and will use recycled materials extensively and with our production sites playing a central role. At the same actively reduce the use of specified chemical substances. time, some 200,000 employees working at Toshiba Group In the area of Greening by Technology, we are enhancing our companies will take an active role in developing environ- programs to develop renewable energy sources, including mental activities rooted in their local communities, thereby solar, hydro, geothermal, and wind power. At the same time, building a global environmental communication network we are promoting the improved efficiency in thermal power that connects people together. generation technology and commercialization of carbon dioxide capture and storage (CCS) technology, as well as the In Conclusion development of new thermal power generation cycles de- Reputation signed to capture CO2 more easily and safer nuclear power One of my favorite books is Ichinichi Ichigen (A Thought generation technologies. As a result, in FY2012, we achieved a Day), written by Masahiro Yasuoka, a scholar. The book 1.32 trillion yen in sales of energy-related products and re- preaches the principles of life, teaching readers virtues to duced 450 million tons of CO2 emissions. Both of these results which they should aspire. It is also very instructive to me are close to the targets initially planned. In the future, we will when I think how corporate management should be. In the actively establish next-generation power transmission and 138 years since its foundation, Toshiba Group has adopted distribution technologies “smart grids” and build smart com- a philosophy of serving the public with passion and communities for advanced city planning. In FY2015, we plan to mitment to innovation. Under this guiding principle, we will achieve energy-related product sales of 1.9 trillion yen and a accelerate the integration of business management and Advancing Stage to the Next mitigation in CO2 emissions of 490 million tons, thereby con- environmental management so that through providing our tributing to achieving an optimal mix of energy sources and a products and services to a greater number of people, we sustainable, low-carbon society. can attain a world in which all people lead affluent lifestyles in harmony with the Earth. To that end, we will stay true to High-efficiency Manufacturing Strategy Toshiba Group’s slogan, “Committed to People, Committed Greening of Process refers to our initiatives aimed at mini- to the Future,” and will strive to become one of the world’s mizing inputs such as materials and energy in manufacturing foremost eco-companies, and in doing so, earn the trust of processes globally, reducing the discharge of waste and society. It is my sincere desire that we may enjoy your ongo- chemical substances, and keeping environmental impacts ing support and cooperation. to a minimum—even if production increases. In FY2012, by Director reducing power consumption for air conditioning and light- President and CEO ing, restricting the use of electricity, conducting global en- Toshiba Corporation

Toshiba Group Environmental Report 2013 04 chapter chapter1 Vision and Strategies 1 Toshiba’s Initiatives for Reconstruction and Power Saving

Toshiba Group will contribute to rebuilding Japan and saving electricity across a wide range of areas, including the provision of diverse products and services, electricity and energy conservation efforts at production sites and the sharing of power-saving tips with customers. Vision and Strategies

Provision of products and services to help recover Supporting reconstruction projects from the earthquake and conserve electricity Toshiba Group supported a project plan of Fukushima Recon- ● Support for earthquake recovery and reconstruction struction Solar Co. (which is engaged in power generation and Since the March 11, 2011 earthquake, Toshiba Group has regional exchanges to help reconstruct Fukushima Prefecture), striven with all its resources to ensure the safety of the strick- invested in the firm, and cooperated with the firm in construct- en Fukushima Daiichi Nuclear Power Station (for details, see ing a photovoltaic power station*1. In March 2013, Minamisoma page 29 of this report and page 37 of the CSR Report 2013) Solar Agri-park was completed. This park supplies electricity Expansion of ECPs and supported disaster recovery and reconstruction by fully generated at photovoltaic power stations to plant factories and utilizing its wide range of business domains, from social sells surplus electricity to other parties. In order to support chil- infrastructure systems to household appliances and digital dren’s development, effective use is made of the photovoltaic products. power station and plant factories to offer “Green Academy” classes, which enable children to learn through hands-on experienc- es. In these classes, children (mainly elementary school students from the city of Minamisoma) experience charging of electric vehicles and the most advanced form of agriculture at a factory Reconstruction project (Ishinomaki project) while learning how power is generated using natural energy. Manufacturing High-e ciency

In accordance with Ishinomaki City’s “Eco Safety Town Con- cept,” we are promoting the development of a smart community that aims to realize a safe, secure, and environmentally conscious town where residents can use electricity even when a disaster occurs, chiefly by developing a regional energy management system (EMS) and installing photovoltaic power generation systems and storage batteries*1. The concept behind this project is to create a low-carbon eco-town and develop a safe and secure community where power supply Compliance and Management and information flows are not disrupted even when a disaster occurs. Toshiba Group is making the most of the know-how it acquired through the Yokohama Smart City Project (YSCP) (for details, see page 14) to develop a community where re- In addition, Toshiba is supporting reconstruction projects *2 newable energy is used in order to achieve greater energy based on the New Madeina Village Plan of Iitate Village, efficiency during normal times and to ensure power supply Fukushima Prefecture. In addition to cooperating with project and information flows are not disrupted even when a disaster managers in developing a master plan to promote industry for occurs so that residents can live with a sense of security. job creation and to develop a foundation for the lives of local residents, we are also considering ways of actualizing the plan, Developing disaster-resistant communities such as by generating power using renewable energy, con- through smart solutions trolling energy use in the village, and developing such control into viable businesses.

During a Safe, secure community without disruption to electricity supply *1: This photovoltaic power station has been constructed by Fukushima Recon- disaster and information flows struction Solar Co. using its own funds and subsidies from the Ministry of Agri- Reputation culture, Forestry and Fisheries (for emergency projects to promote utilization of resources in rural communities, such as small-scale water power). *2: “ Madei,” a word in the dialect spoken in the Fukushima region since ancient times, means “kind and thoughtful,” “sparing no effort,” and “wholehearted.” “Madeina Village” refers to a village where the meaning of “madei” is realized.

House

● Actions for electricity conservation

Disaster prevention Advancing Stage to the Next center Toshiba Group provides a wide variety of products and services that contribute to energy and electricity conservation. House YSCP*2 Implementation Among these are PCs and electric fans with power peak-shift Storage battery HEMS functions, which switch over to built-in batteries for power

Photovoltaic CEMS when electricity demand peaks; home fuel cells which can power generation EV charging Normal equipment Low-carbon eco-town BEMS times be used for power generation at home and that continue to MEMS generate power even in the event of a power failure; storage *1: This was chosen by the Ministry of Economy, Trade and Industry (METI) as battery system which are effective in conserving electricity one of its FY2011 projects to promote the introduction of smart communities using the subsidies for such projects. METI invited applications from the public during times of peak power demand; LED lamps; and cloud for the subsidies, and in April 2012, Toshiba Group, together with Ishinomaki computing services, which make power consumption visi- City and Tohoku Electric Power Company, applied by submitting a project to construct a smart community within the city. ble. *2: Yokohama Smart City Project

05 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

Saving power throughout an entire production Home storage battery system “eneGoon” site by making power consumption visible Vision and Strategies

eneGoon is a stationary home storage battery Nishishiba Electric Co., Ltd. is accelerating power-saving efforts system that has a capacity of 6.6 kWh and a throughout its entire production site by making power con- *1 maximum power output of 3.0 kVA . It can sumption visible. The company measured power consumption be rapidly charged in about two hours. This storage system not only supplies electricity for all plant equipment daily and adjusted operation by simulat- to electrical appliances in the home*2 but also ing electricity demand. As a result, in FY2012 it reduced summer responds to sudden power failures and helps peak power consumption by 30% and total summer power con- reduce power consumption during peak hours by using electricity sumption by 279 MWh (12%) compared to the FY2010 level. that was stored at night*3 during the daytime when demand is high. When combined with photovoltaic power generation or an (kWh) HEMS, eneGoon contributes to daily power saving and reduction Expansion of ECPs 60,000 of CO2 emissions. Photovoltaic power panels Power 50,000 conditioner FY2010 results (cumulative)

40,000 Distribution 100V/200V equipment switchboard Result (daily) FY2012 results (cumulative) 202 sites Common load 30,000 Distribution switchboard Pump circuits for electricity storage Air Washing Microwave oven system conditioners machines Electric 100V equipment 20,000 light circuits 105 sites Select load 101 sites 10,000 High-e ciency Manufacturing High-e ciency Lighting Main body of storage battery Refrigerator TV set Test circuits 201 sites *1: During normal use 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 27 28 29 30 (Days) *2: In the event of a power failure, electricity is supplied to selected loads. *3: Requires a contract with an electric power company. Change in power consumption

Circulation Heating Pump Unit “CAONS” Introducing tips for power-saving

CAONS has been developed by applying the mechanism of Toshiba posts articles on its website which suggests ways of heating pumps widely used for air conditioning purposes to cleverly using the power-saving functions of products pri- effectively employ unused heat generated from the produc- marily designed for home use, such as PCs, TV sets, air con- Compliance and Management tion process. It is the industry’s first*1 air-cooled heating pump that enables users to take 90-degree hot water and achieves ditioning systems, refrigerators, and washing machines with a high coefficient of performance (COP), 3.5*2. Due to its com- dryers. Tips for power-saving are given for each product. In pact design, several CAONS units can be installed separately addition, the website provides detailed information on pow- near processes that require them, thus er saving for PCs and Blu-ray disk recorders. For example, minimizing heat loss during conveyance. power-saving measures for PCs include eco-mode, which This heating pump reduces energy con- enables users to optimally conserve electricity using Toshi- sumption by more than 60% compared ba’s proprietary eco-utility functions, and Toshiba peak-shift to the previous systems, contributing to substan- control. For Blu-ray disk recorders, available functions in- tial energy conservation clude energy-saving standby functions, which reduce power and reductions in CO2 consumption during time periods other than those set for emissions. instant activation, and Auto Off functions, which automatically switch the recorder off when it is not in use. *1: Announced in January 2012 Reputation *2: This value was obtained under the following conditions: 60° on the hot water intake side, 65° on the outlet side, 25° on the dry-bulb thermometer, and 21° on the wet-bulb thermometer (on the assumption that the heating pump has been installed indoors).

Reducing electricity use at production sites All business and production sites of Toshiba Group have been continuously striving to conserve electricity since the 2011 earthquake. Toshiba Group continued to remove some fluorescent lamps, set Advancing Stage to the Next air conditioning temperatures higher, stop some elevators, and take other power-saving measures as it did immediately after the earthquake. At the same time, in addition to actively introducing energy-saving equipment, such as LED lighting and high-efficiency ● Clever ways to conserve power air conditioning systems, the Group reviewed cleanroom operating URL:http://www.toshiba.co.jp/csqa/contact/support/info/setsuden.htm (in Japanese only) methods such as set temperatures, humidity, and differential pres- ● Let’s conserve power with dynabook PCs. sure and installed high-efficiency power machinery and manufac- http://dynabook.com/pc/setsuden/index_j.htm?utm_source=dynabook_top turing equipment. In FY2012, by taking these and other measures, &utm_medium=eco&utm_campaign=setsuden#other (in Japanese only) it reduced peak power consumption by 13.9% (annual average ● Clever ways to conserve power for PCs http://dynabook.com/assistpc/faq_search/setsuden.htm (in Japanese only) rate) compared to the FY2010 level and total power consumption ● Saving power cleverly! (Blu-ray disk recorders) by 9.1% compared to the FY2011 level. In the future, Toshiba Group http://www.toshiba.co.jp/regza/bd_dvd/dbr-howto/eco.html (in Japanese only) will continue to conserve electricity and energy.

Toshiba Group Environmental Report 2013 06 chapter1 Chapter 1 Vision and Strategies Vision and Strategies Toward Environmental Vision 2050

Toshiba Group will contribute to society by creating new value through innovation to ensure that all people can lead a uent lifestyles in harmony with the Earth. Expansion of ECPs

INDEX Environmental Vision 2050 Summary of activities in FY2012 The world population topped seven billion in October

2011, and rapid population growth and the urbanization Manufacturing High-e ciency Formulation of the Environmental Grand Design P09 of populationsPerformance are expected indicators to continue for our Visionto occur mainly in the emerging countries of Africa, Asia and other regions. Toshiba's Environmental Grand Design As a result, food, water, and energy shortages; decreases in Development of six performance areas and four strategies the "Toshibaconsumable eco resources style" such as fossil fuels, metals, and minerals that support today’s society; climate change; and other problems are having global effects as a result of their complicated, intricate relations with one another. We must Results of the Fifth Environmental Action Plan P11 address these issues urgently. Toshiba Group has developed Environmental Vision 2050, a

Improvement in overall eco-e ciency corporate vision that envisages affluent lifestyles in harmo- Compliance and Management Achieved an overall eco-e ciency of 2.59 compared to our target of 2.5 ny with the Earth as an ideal situation of mankind in 2050, Achieved our goals for 19 out of 22 items and will work to realize this vision.

■ Changes in the World Population (Estimates)

(billion people) Topped Oceania 10 seven billion 0.057 billion at the end of October 2011 9.551 billion Toshiba Group’s Initiatives for Smart Africa 8.425 billion Communities to Realize a Sustainable Society P13 8 2.393 billion 6.916 billion Est. Europe 0.709 billion 6 Toshiba Group’s initiatives for smart communities 5.321 billion Central and South America Participated in pilot projects in various parts of the world, 0.782 billion 4 including Yokohama North America

0.446 billion Reputation 2 Asia 5.164 billion Special feature Conservation of Biodiversity P17 1990 2000 2010 2020 2030 2040 2050 (FY) Source: U.N. World Population Prospects: the 2012 Revision Percentage of sites where biodiversity surveys 81% were conducted ■ Mega-trends in Environmental Changes Ex-situ conservation Population Global environment The information

経済のグローバル化新興国先進国 Advancing Stage to the Next problems Energy problems /Natural disasters society 人口急増・コミュニケーRapid Industrial大競争時代 Increased Increased 少子高齢化Shift to digital population development demand for 都市集中化greenhouse gas technology and cloud ションの即時化growth and and changes primary emissions生活レベル computing urbanization in dietary energy of populations habits 交通渋滞 Typhoons, hurricanes, 向上and 医療費の高騰Instantaneous Increased CO2 communication ネットコモディティ市emissions 場産業発達・cyclones Floods水不足の拡大食生活変化 Social networks Decliningコミュニティ birth Food rates andの拡大 ageing Tsunami食料不足介護問題 of society, nursing shortages エネルギー Increased cyber care problems Water サイバーテロ増加shortages Renewable 需要の増大 terrorism Soaring medical energy Big data expensesデジタル Growing Volcanic Earthquakes commodities 資源不足・高騰eruptions コンバージェンスmarkets Income disparities Diversifying power sources地球温暖化Climate change Digital convergence

Use of sustainable energy and Preparations for natural disasters Secure information infrastructureセキュアな情報 development Development持続可能なエネ of disaster-resistant Infrastructureバイタル＆ development communities インフラ整備ルギー・資源利用ヘルスケア※１ ※１バイタル＆ヘルスケア：生命維持に寄与する要素（水、空気、食糧等）と高齢化対応・健康増進

07 Toshiba Group Environmental Report 2013 chapter1 Chapter 1

Vision and Strategies Throughout the life cycle of products from manufacture Environmental Vision 2050 requires that the Group globally and use to recycling and reuse, Toshiba Group will strive to achieve Factor 10 by 2050. In consideration of the above, Vision and Strategies provide safer and more comfortable lifestyles and create achieving Factor 10 has been established as a long-term enriched value for customers. The Group will also strive goal by backcasting from the ideal situation in 2050. (See for harmony with the Earth by working to mitigate climate the graph below.) Toward Environmental Vision 2050 change, using resources efficiently, and managing chemicals At the same time, for 2015, the final year of the Fifth Envi- properly in order to reduce environmental impact. ronmental Action Plan which began in FY2012, achieving Factor 3.0 has been set as a stretch goal based on current Toshiba Group will contribute to society by creating new value through innovation Environmental Vision 2050 initiatives through forecasting. to ensure that all people can lead a uent lifestyles in harmony with the Earth. Toshiba Group practices environmental management Achieving Factor 10 in 2050 that promotes harmony with the Earth, contributing to Ideal situation in 2050 (a uent lifestyles in harmony with the Earth) Expansion of ECPs the creation of a uent lifestyles Issues to be addressed in realizing the vision Accelerated economic development Increase value creation by times for society. (esp. developing countries) 3.4 Increasing population growth Reduce environmental impacts with overpopulation to 1/1.5 Target of 50% CO2 emissions cut Reduce global environmental to mitigate climate change impacts to 1/2

Factor 10 (3.4×1.5×2) High-e ciency Manufacturing High-e ciency (Factor) 10 10

8 Backcasting

6 5 4 Toshiba Group aims to realize a Forecasting 3.0 “world in which people lead a uent Environmental Vision 2050 2 lifestyles in harmony with the Earth” by 1 Environmental Visiondrawing 2050 up environmental action plans taking into account progress in Factor achievement 0 and the advancement of scientic knowledge. 2000 2015 2025 2050 (FY) • It is necessary to increase the world’s eco-eﬃciency by 10 times Targets for Compliance and Management Performance indicators for our Vision Performanceas compared indicators to the FY2000 for level our by FY2050 Vision (Factor 10). Environmental • It is necessary to make improvements to reach at least Factor 3.0 Vision 2050 Based on theWe willconcept pursue of both “eco-ef the creation- of rich value and in FY2015, the target year of the Fifth Environmental Action Plan. coexistence with the earth based on serious consideration ficiency,” we haveof what set thingsgoals may to be like in 2050.Factor ensur"Toshibae that all ecopeople style" can lead "Toshiba eco style" affluent lifestyles in harmony Degree of improvement with the Earth. in eco-e ciency In order to further accelerate its initiatives for environmental Eco-efficiency can be expressed Value management based on the four “Green” concepts—”Green- as a fraction, with the creation Environmental impacts ing of Process,” “Greening of Products,” “Greening by Tech- of new value as the numerator nology,” and “Green Management”—as it aims to become and environmental impacts as the denominator. The more one of the world’s foremost eco-companies and emphasize enriched value created—or the more environmental im- its approach to environmental issues in the wide spectrum pact is reduced and progress made toward coexisting with of society, Toshiba Group has established “Toshiba eco style”

the Earth—the more eco-efficiency improves. We call the as its unified global brand for environmental initiatives. It Reputation degree of improvement in eco-efficiency the “Factor,” and will work to achieve two “eco styles” on a global scale: (1) increasing the Factor leads to affluent lifestyles in harmony For individuals, our eco-conscious products create value with the Earth. and help to realize richer, more diverse lifestyles while re- Based on several predictions about the future shapes soci- ducing impacts on the global environment, (2) For society, ety may take, we examined how much we need to raise the our advances in power systems, sophisticated transmission Factor by 2050. networks, and essential infrastructure systems secure new levels of convenience, safety, and security, while contribut-

It is assumed that the gross domestic product (GDP) of a Advancing Stage to the Next country reflects value that its people can enjoy. According ing to the realization of an eco planet Earth. to the Organisation for Economic Co-operation and Devel- http://ecostyle.toshiba.com opment (OECD), the world’s average GDP per capita is ex- “Toshiba eco style,” a unified global brand pected to grow 3.4 times by 2050. for environmental initiatives It is also expected that the world population will increase by 1.5 times as compared to 2000 by 2050. And at the 15th Conference of the Parties to the U.N. Framework Convention on Climate Change, participants emphasized that it is necessary to reduce greenhouse gas emissions by half by 2050. If the three points cited above are taken into account, the required degree of improvement in eco-efficiency (Factor) in the world in 2050 is 10.2 (3.4 × 1.5 × 2). The Toshiba Group

Toshiba Group Environmental Report 2013 08 chapter chapter1 Vision and Strategies 1 Formulation of the Environmental Grand Design

Toshiba aims to establish its position as the world’s foremost eco-company through six performance areas and four strategies. Vision and Strategies

We will establish performance areas that should to apply the concept of excellent ECPs to all product line- be achieved and endeavor to integrate business ups. At the same time, by pursuing manufacturing with the administration and environmental management world’s lowest level of environmental impacts through our through the four strategies. high-efficiency manufacturing strategy, we will contribute to realization of sustainable societies on a global scale. At Toshiba Group has formulated the Environmental Grand the same time, under our compliance and management Design to establish its position as the world’s foremost strategy, we will strengthen the foundation of environmen- eco-company in FY2015. This Grand Design consists of six tal management by continuing efforts to build an organiza- performance areas that should be achieved by FY2015 and Expansion of ECPs tional structure worthy of the trust of society while we strive four environmental strategies: expansion of ECPs, high-effi- to increase the visibility of Toshiba as an environmentally ciency manufacturing, compliance and management, and sophisticated company through our reputation strategy. reputation. Under the strategy to expand ECPs, we will work

2050 Achievement of Environmental Vision 2050 Manufacturing High-e ciency

The world’s foremost eco-company 2015

Performance areas Compliance and Management (1) Sales of excellent ECPs (2) Sales of energy-related products (3) Environmental performance acceptability of products (4) Impact of manufacturing on the environment per unit sales (5) Reliable system for complying with laws and regulations (6) Visibility of Toshiba as an environmentally sophisticated company Spread of products with the highest level of environmental performance World’s lowest level of environmental Reputation impacts Greening of Products

Greening of Process Greening by Technology

High-e ciency manufacturing strategy Strategy to expand ECPs (Achievement of greater production site infrastructure e ciency (Development of advanced environmental performance × Reform of manufacturing processes) × Marketing of ECPs that meet local needs) Advancing Stage to the Next

Compliance and management strategy Reputation strategy (System optimization and greater e ciency (Optimal communication × Anticipation of legislative trends) × Enhancement of Toshiba’s positive image) Green Management Reliable organization Visibility of Toshiba as an environmentally sophisticated company

Human resource development, environmental audits, and environmental accounting

09 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

We have developed the Fifth Environmental Action Plan based on the Environmental Grand Design. We will achieve this plan through four “Green” initiatives. Vision and Strategies

Stepping up environmental management by crease sales of energy-related products concerning various introducing product sales management and total types of power generation (e.g., thermal and wind power) to environmental impact controls 1.9 trillion yen, about 1.5 times the FY2011 level. The Group will also offer advanced low-carbon technology to the glob- Based on the four strategies that constitute the Environ- al market with the aim of reducing CO2 emissions by 490 mental Grand Design, Toshiba Group is implementing four million tons. “Green” initiatives: Greening of Products, Greening by Tech- ● High-efficiency manufacturing strategy nology, Greening of Process, and Green Management. In In the Greening of Process initiative, we manage perfor- order to achieve great integration of business management mance indicators on both “per unit production” and “total

and environmental management, we have established volume” basis. Over the four years leading up to FY2015, we Expansion of ECPs specific goals to achieve continuous business growth and aim to achieve the world’s lowest level of environmental reduce environmental impacts; we are now taking action to impact through high-efficiency manufacturing, in which we attain these goals. simultaneously reduce costs and environmental impacts ● Strategy to expand ECPs (greenhouse gases, waste materials, chemical substances, In order to expand our ECP lineups, we are implementing wastewater discharged from production sites, etc.). two initiatives: Greening of Products and Greening by Tech- ● Compliance and management strategy, Reputation strategy nology. We work on Green Management in order to enhance our ba- In our Greening of Products initiative, by which we aim to sic environmental activities, such as developing the human create products with the highest level of environmental resources that lead our environmental initiatives, upgrading Manufacturing High-e ciency performance, we manage products’ environmental per- our environmental management, and promoting better formance using performance indicators such as sales of environmental communication. The Fifth Environmental Ac- products, reductions in product-derived CO2 emissions, the tion Plan focuses on three performance indicators: conser- percentage of recycled plastics used, and reductions in the vation of biodiversity, environmental education and human use of specified chemical substances. We will strive to cre- resource development, and environmental communication. ate more products with the highest level of environmental We will ensure that each and every one of its employees performance mainly in order to increase sales of excellent becomes aware of the need to participate in environmental ECPs to 1.8 trillion yen in FY2015, approximately six-fold management, and in FY2015, we plan to promote “Global compared to the FY2011 level, and to reduce CO2 emissions Environmental Action” with the participation of all Toshiba

by 15 million tons. employees worldwide. Through these initiatives, Toshiba Compliance and Management In the Greening by Technology (low-carbon energy technol- aims to establish its position as one of the world’s foremost ogies) initiative, we manage environmental performance eco-companies by 2015 by achieving greater integration through performance indicators such as sales and reduc- between business operations and environmental manage- tions in CO2 emissions. In FY2015, Toshiba Group will in- ment.

Implementing various measures based on the four “Green” concepts Greening of Products Greening by Technology Create products with the highest level of environmental performance Developing advanced low-carbon technology on a global scale Aiming to achieve the highest level of environmental performance for all products we develop Contributing to provision of a stable power supply and mitigation of climate change through and thus reduce environmental impacts throughout the product life cycle the low-carbon energy technologies Goal Increasing sales of Excellent ECPs to 1.8 trillion yen in 2015 Goal Increasing sales of energy-related products to 1.9 trillion yen in 2015 Reputation

Mega solar system High-efficiency combined cycle thermal Universal Smart X heat source system LED light bulb power generation system Greening of Process Green Management Advancing Stage to the Next Pursuing the world’s lowest level of environmental impacts Aiming to achieve continuous improvement of our basic activities, including the human Minimizing the impacts of production processes on the environment through high-efficiency resource development, environmental communication and biodiversity conservation manufacturing Goal Training 2,000 employees as eco-style leaders (2015) Goal Increasing eco-efficiency by 1.5 times compared to the FY2000 level in 2015

Energy conservation diagnosis High-efficiency freezer Employee participation website Eco-style leader serving as a tour guide

Aiming to establish its position as one of the world’s foremost eco-companies

Toshiba Group Environmental Report 2013 10 chapter chapter1 Vision and Strategies 1 Progress in the Fifth Environmental Action Plan

Toshiba Group achieved its annual goal for overall eco-efficiency by reaching its eco-efficiency goals in two areas: products and business processes. Vision and Strategies In FY2012, we achieved our annual goal for Achieved Status of the Fifth Environmental overall eco-efficiency Action Plan In order to realize an ideal state of environmental manage- The table on page 12 summarizes the progress made in ment in 2050, Toshiba Group formulates environmental FY2012 with respect to the Fifth Environmental Action Plan. action plans and manages specific environmental activities During FY2012, Toshiba Group achieved its goals for 19 of and their targets in accordance with these plans. Since we the 22 items in the Plan. formulated our first environmental action plan in FY1993, In the Greening of Product and Greening by Technology ini- the Group has expanded its scope of environmental activi- tiatives, we achieved our goals for four of the seven items. In ties and governance. In the Fifth Environmental Action Plan, particular, sales of excellent ECPs were 668.8 billion yen, 33%

higher than initially planned. On the other hand, progress for Expansion of ECPs which covers the period from FY2012 to 2015, we are work- the energy-related business and management of chemical ing on 22 activity items. The Environmental Vision 2050 re- substances were delayed because energy demand did not quires the Group to increase the degree of improvement in grow as initially planned and because reliability assessment overall eco-efficiency by ten times (Factor 10) by 2050 and and other processes took time as we replaced PVC and BFRs by five times (Factor 5) by 2025. In FY2012, taking these re- with other substances. quirements into consideration, the Group worked to achieve In the Greening of Process initiative, we achieved our goals its goal of increasing the degree by 2.5 times (Factor 2.5). As for all nine items. We achieved our goal of reducing total a result, we increased product eco-efficiency in FY2012 by greenhouse gas emissions mainly by taking measures to 2.89 times (target: 2.8 times) compared to the FY2000 level conserve electricity used for air conditioning, lighting, etc., Manufacturing High-e ciency thanks to continued progress in creating value and reducing monitoring power consumption more closely, conducting environmental impact mainly in the area of digital products energy conservation diagnosis globally, and adjusting pro- and devices. We improved business process eco-efficiency duction volumes. by 1.39 times (target: 1.35 times) because of reductions in In the Green Management initiative, we achieved our goals for greenhouse gas emissions through energy conservation all three items. We obtained satisfactory results for our new and other efforts. Thus, Toshiba Group exceeded its targets initiatives. Specifically, to conserve biodiversity, we effectively used our business and production sites to protect rare flora in both areas and succeeded in improving overall eco-effi- and fauna. In terms of environmental education and human ciency, which combine these two types of eco-efficiency, by resource development, we trained employees as Toshiba eco- 2.59 times, more than our target of 2.5 times.

style leaders. To promote environmental communication, we Compliance and Management opened a new website with employees’ participation. In FY2013, we aim to achieve all goals for the year by accelerating global business development in the energy sector and systematically advancing the management of chemical substances contained in products. ■ Progress of overall eco-efficiency

Product eco-e ciency Progress of overall eco-e ciency

FY2012 result FY2012 result 2.89 times 2.59 times 2.89 2.79 3.40 Environmental impacts of products 2.59 3.00 3.00 2.50 2.44 Reputation (from procurement of raw materials through 2.8 Result 2.13 Plan 2.70 to disposal and recycling) 2.05 2.26 1.9 2.38 2.50 2.20 Result 1.97 2.03 1.89 1.88 1.77 2.16 80% 1.74 2.00 1.00 1.86 1.74 1.63 Plan FY2012 plan 1.00 2.50 times 2000 2007 2008 2009 2010 2011 2012 2013 2015 (FY)

2000 2007 2008 2009 2010 2011 2012 2013 2015

(FY) Advancing Stage to the Next Business process eco-e ciency If these two eco-e ciency targets are achieved, overall eco-e ciency (2.50 times) will be accomplished as follows: FY2012 result Product eco-efficiency (2.80 times) × 0.8 + Business process eco-efficiency 1.39 times (1.35 times) × 0.2 = Overall eco-efficiency (2.50 times) Factor 1.53 Environmental impacts of 12 1.39 business processes 1.39 1.35 10 10 Result 1.50 (manufacturing) 1.44 8 1.22 1.20 1.35 6 5 1.28 4 2.5 20% 1.00 1.20 1.20 1.20 1.19 2 1 Plan 0 2000 2012 2025 2050 (FY) 2000 2007 2008 2009 2010 2011 2012 2013 2015 (FY) Backcasting from the targets for FY2050

11 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

Toshiba Group’s Fifth Environmental Action Plan FY2012 FY2013 FY2015 Eco-efficiency See the Goal Result Evaluation Goal Goal following page.

Improvement of overall eco-efficiency (compared to FY2000 level) 2.5 times 2.59 times Achieved 2.7 times 3.0 times Vision and Strategies Improvement of product eco-efficiency (compared to FY2000 level) 2.8 times 2.89 times Achieved 3.0 times 3.4 times Page 11 Improvement of business process eco-efficiency (compared to FY2000 level) 1.35 times 1.39 times Achieved 1.44 times 1.5 times FY2012 FY2013 FY2015 Greening of Products/Greening by Technology See the Goal Result Evaluation Goal Goal following page. Increasing sales amounts of Excellent ECPs 0.5 trillion yen 0.67 trillion yen Achieved 0.8 trillion yen 1.8 trillion yen Page 24 (Greening of Products/by Technology Sales of social infrastructure systems and electronic devices increased. Overall 1.36 trillion yen 1.32 trillion yen Not achieved Increasing sales amounts of energy-related products The goal was not achieved because demand for thermal and hydroelectric power gener- (Greening by Technology) ation systems, photovoltaic power generation business, and other products did not grow 1.49 trillion yen 1.9 trillion yen Page 28 as initially planned, though such sales increased compared to the previous year. Going forward, we will step up efforts to increase sales of these systems globally. Achieved Reduction of CO2 emissions through eco-products 6 million tons 6.8 million tons We improved the energy-saving performance of home appliances and social infrastruc- 9 million tons 15 million tons Mitigation of climate (Greening of Products) Expansion of ECPs ture systems. Page 27 change Achieved Reduction of CO2 emissions through energy-related 450 million tons 450 million tons products (Greening by Technology) We achieved the goal by increasing the efficiency of various power generation-related 460 million tons 490 million tons products. - *3 *3 (33%) 29% Resource savings for products We made progress in areas such as making LCD TV sets flatter and lighter as well as 35% 50% Efficient use of increasing the capacity of magnetic disks. resources 2.6% 4.7% Achieved Page 32 Increasing the use of recycled plastics for products*4 We made progress in using recycled plastic components for washing machines, refriger- 5.0% 3.0% ators, and vacuum cleaners, as well as in newly using such components for business-use equipment. product group product groups Not achieved Reduction of specified chemical substances 20 s 17

Management of The goal was not achieved because the reliability assessment for alternative parts and Total 80 Manufacturing High-e ciency contained in products*6 chemicals other processes took time. Going forward, we will work to use alternatives to PVC mainly 30 product groups Page 35 (reduction of PVC*5/BFRs*5) for wiring and electronic components as well as alternatives to BFRs chiefly for main product groups frames and mounted parts. FY2012 FY2013 FY2015 Greening of Process See the Goal Result Evaluation Goal Goal following page. Reduction in total greenhouse gas emissions*7 3.45 million tons <52%> 2.76 million tons <42%> Achieved million tons <60%> million tons <67%> (Compared to FY1990 level) Improvements were made mainly in energy conservation investments, electricity conser- 3.92 4.39 vation measures, and production adjustments. Mitigation of climate 96% 90% Achieved Improvement of total energy-derived CO2 emissions Page 41 change per unit production*8(Compared to FY2010 level) We made improvements mainly in energy conservation investments, electricity conserva- 94% 90% tion measures, and production adjustments.

2 98% 90% Achieved Improvement of total CO emissions resulting from product 97% 95% logistics per unit production (Compared to FY2010 level) We achieved the goal mainly by improving load factors and restructuring logistic centers. 107,000 tons <56%> 92,000 tons <48%> Achieved

Reduction in waste volumes Compliance and Management 112,000 tons <59%> 117,000 tons <62%> (Compared to FY2000 level) More waste was turned into valuables due to all-out efforts to sort it upon discharge. Improvement of the total volume of waste generated 100% 96% Achieved per unit production (Compared to FY2010 level) We made improvements on a “per unit production” basis thanks to manufacturing process 96% 90% Efficient use of reforms. resources Page 45 Reduction in the percentage of final waste disposal 1.8% 1.7% Achieved (Compared to the total volume of waste generated) Our initiatives for recycling at overseas business and production sites produced satisfacto- 1.5% 0.5% ry results. 96% 87% Achieved Improvement of the volume of water received per 94% 90% unit production (Compared to FY2010 level) We made improvements at semiconductor plants where large volumes of water are used. 1,694 tons <67%> 1,393 tons <55%> Achieved Reduction in the total emissions of chemicals tons <65%> tons <78%> discharged (Compared to FY2000 level) We achieved the goal mainly by installing equipment for removing volatile organic com- 1,625 1,967 Management of pounds. chemicals Page 47 Improvement of the amount of chemicals handled 100% 94% Achieved per unit production (Compared to FY2010 level) We achieved the goal mainly by optimizing chemical inputs and reviewing the conditions 98% 95% for wastewater disposal. FY2012 FY2013 FY2015 Green Management See the Goal Result Evaluation Goal Goal following page. Biodiversity at major production sites Developing ecosystem networks with production Percentage of sites where Percentage of sites where Percentage of sites where Reputation Conservation of Percentage of sites where surveys Achieved surveys were conducted 100% sites playing a central role in collaboration with local were conducted 50% surveys were conducted 81% measurements were made biodiversity Percentage of sites for which Page 17 communities 54 of the 67 sites surveyed achieved the goal by completing biodiversity surveys. indicators were selected 50% 100% Environmental 200 leaders 230 leaders in Japan Achieved education and human Development of Toshiba eco-style leaders We achieved the goal mainly by recommending that employees take Eco Tests and obtain 400 leaders 2,000 leaders Page 56 resource development other qualifications. Creating an employee commu- Opening of the Toshiba Promotion of “Global Envi- Environmental Expanding environmental communication to Achieved nity to raise eco awareness Baton website Fostering a sense of togeth- ronmental Action” to cope Page 62 communication connect people around the world We developed an employee community by opening the employee participation website erness among employees with global environmental “TOSHIBA BATON.” issues Note) Figures for benchmark years indicate performance data in the boundary set for 2012. Applicable to production and non-production sites in Japan and abroad.

As an indicator that enables appropriate assessment of reduction in greenhouse gas emissions, volume-based real outputs are used for basic-unit goals. Advancing Stage to the Next Real production = [Nominal output in Japan] / [corporate goods price index (for electrical equipment) announced by the Bank of Japan for the year (compared to 1990 levels, where 1990 is represented as 1)] + [nominal output outside Japan] *1 [CO2 emissions of assumed substitute products] - [CO2 emissions of shipped products] (Compares annual emissions during the usage stage and cumulates emissions for half the product life.) *2 Compared with CO2 emissions (rate to net production output) for average thermal power of the same fuel type; for nuclear power/renewable energy, compared with CO2 emissions (rate to net production output) for average thermal power of all types *3 Rate of increase in the amount of resources saved (based on FY2010). As the indicator has been redefined, the value is different from the existing planned value. *4 [Amount of recyclable plastics] / [Amount of plastics used for products] × 100 *5 PVC: Polyvinyl chloride is one of the most common plastics and is used in a wide range of products. There is concern about the generation of hazardous substances due to inappropriate treatment of PVC at the time of disposal and the harmfulness of some additives (e.g., phthalate esters) used to soften PVC. BFR (brominated flame retardants): BFRs are used as flame retarders for plastics. Some BFRs are raising health concerns while others persist in the environment or are bioaccumulative. There is also concern over the generation of hazardous substances due to inappropriate treatment at disposal. *6 Abolished except special uses. *7 4.87 t-CO2/10-thousand-kWh is used for the power factor in Japan, and GHG Protocol data is used overseas. *8 The coefficient of electricity is fixed to that of FY2010. *9 Obtained by deducting the volume of objects with value from the total volume of waste generated (excluding business and production sites engaged in waste treatment and power generation)

Toshiba Group Environmental Report 2013 12 chapter chapter1 Vision and Strategies 1 Toshiba Group’s Initiatives for Smart

Communities to Realize a Sustainable Society Vision and Strategies

In order to help solve global energy and environmental problems and realize a sustainable society, Toshiba Group is working to establish a highly-efficient, stable energy infrastructure, respond to increasingly large amounts of data and ensure information security, curb rises in medical expenses, and help provide advanced medical treatment. In order to meet our goals, Toshiba Group is promoting initiatives for smart communities built on three pillars of innovation: energy, data storage, and healthcare. Smart communities are initiatives that aim to realize personalized comfort and sustainable cities through a combination of various solutions. Thus far, Toshiba Group has participated in many pilot projects and commercial projects in various countries around the world, attempting to address each region’s specific needs and striving to develop smart communities that best fit local needs.

Realizing smart communities built on three pillars of innovation Expansion of ECPs Energy Healthcare

Healthcare Services

Transportation Social Infrastructure High-e ciency Manufacturing High-e ciency Smart Grid EMS*1 Smart community HEMS Medical Homes Services

2 BEMS ICT* / Cloud Storage Distribution FEMS Data Storage and Retailing Buildings and Factories Renewable TV, PC Energy MFPs Data Center Home Appliances Compliance and Management Power Supply Servers Materials and Devices Storage Arrays *1: EMS (Energy Management System) HDD / SSD / NAND *2: ICT (Information and Communication Technology)

Developing Smart Community projects that reflect local prioritized needs

Toshiba Group participates in 35 projects worldwide. Visualization of Energy Effective Mix Use of Use, Effective Use, and Utilization of Middle and Electricity and Heat Stable Operation Renewable Energy 2 United Kingdom 2 Eastern Europe Self-sufficient 6 Healthcare Security 1 France 2 United States Energy Use Italy 2 China Japan 14 1 Smart Shopping Community Solution for

Thailand Management EV Operation Reputation 2 India Viet Nam 2

Malaysia 1 Japan Iwate • Kuji PJ : Number of Projects Miyagi • Ishinomaki PJ United Kingdom India China Fukushima Bristol City Manesar Low Carbon Infrastructure • Iitate PJ • EUPJ (smart home) • Electricity and Heat Supply • Business Feasibility Study • Minami-Soma PJ Advancing Stage to the Next Isle of Wight Haryana Gongqingcheng Saitama • Self-sufficient Renewable Energy Use • Electricity and Heat Supply • SC Demonstration • Koshigaya Lake Town Tianjin Tokyo France Viet Nam • Environmental City PJ • EV Bus Feasibility Study Lyon Hanoi Guangzhou Nansha Kanagawa • Smart Community • SW Technology Park • SC Feasibility Study • Kawasaki Open Collaborative Research Demonstration of Environmental Technology Ho Chih Min Jinzhou • BaSon Area Redevelopment • Kawasaki Station Area PJ Italy • Smart Community PJ • YSCP Genoa Thailand Dongying, Wenzhou Osaka • Smart City Promotion AMATA Science City • Japan-China Eco City PJ • Ibaraki PJ ACEA • High-Industry Accumulated City United States Miyako Island, Okinawa • Smart Grid Malaysia New Mexico • New Energy System Middle & East Europe • SG Demonstration Demonstration PJ Green Township Vision • Whole Island EMS • SC Business Study • Putrajaya City PJ Indiana • ESN PJ • Kurimajima PJ • SC Feasibility Study • Miyakojima μEV PJ

* As of May 2013 (after FY2009) * As of May 2013 (after FY2009) 13 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

Regional energy management for a low-carbon society Vision and Strategies

Yokohama Smart City Project (YSCP)

The Yokohama Smart City Project aims to establish comfortable eco-lifestyles and build systems that use energy effectively on a community-wide scale in order to cope with climate change and reduce CO2 emissions by breaking away from dependence on fossil fuels. The Yokohama Smart City Project started tests in October 2012 to reduce energy consumption and CO2 emissions through wide-area energy management by introducing energy management systems (EMSes) for buildings, factories, and houses as well as electric vehicles (EVs) and storage batteries in the city of Yokohama. This project is a large-scale experiment in which the city’s many consumers participate-the project aims to test the effectiveness of wide-area, large-scale demand response (“DR,” demand/supply control) and system stabilization through Expansion of ECPs storage battery control. Smart  Overview of YSCP Condominium HEMS HEMS Demand Supply Balancing Storage SCADA Smart Battery Storage Condominium

HEMS High-e ciency Manufacturing High-e ciency

Storage SCADA Demand Side Battery Storage Apartment HEMS

CEMS

CEMS Charging Station

Smart FEMS Compliance and Management

EV Data Center Charging-Discharging FEMS EV

BEMS Clustered BEMS

Smart BEMS

Commercial Facility BEMS

O ce Building Reputation BEMS Smart BEMS Toshiba-made systems

Develop Community Energy Management aiming to cut CO2 emission by 25%*

* FY2020 reduction target compared to the FY1990 level under Yokohama City’s Action Plan for Global Warming Countermeasures

● CEMS ● BEMS Advancing Stage to the Next CEMS connects consumers (buildings, factories, houses, and BEMS reduces peak energy consumption of several buildings EVs) and storage battery SCADA through standard interfaces to through DR using algorithms to optimally distribute the surplus control overall energy demand via various DR incentives while power and controls operation of in-building energy creation and monitoring local energy demand. storage equipment that support DR.

● Storage battery SCADA ● HEMS Storage battery SCADA links supply/demand adjustment storage HEMS shifts peak energy consumption through visualization of batteries and consumers’ storage batteries for system stabiliza- energy consumption and controls operation of home appliances tion and DR-based control. automatically through automatic DR, while combining energy creation and storage equipment in condominiums.

CEMS: Community Energy Management System BEMS: Building Energy Management System HEMS: Home Energy Management System SCADA: Supervisory Control And Data Acquisition DR: Demand Response

Toshiba Group Environmental Report 2013 14 chapter1 Vision and Strategies Toshiba’s Solutions for Smart Communities

Toshiba Group will promote initiatives for smart communities that aim to realize personalized comfort and sustainable cities by providing social infrastructure solutions in a wide range of areas such as energy, transport, water and healthcare.

Energy solutions

Consideration for Contributing to mitigation of climate change in a wide range of tasks from creating, storing, and using the environment energy to connecting energy systems Creating energy Storing energy Using energy

Hydroelectric Geothermal Wind power Mega solar system power generation power generation generation Smart battery Energy-saving home appliances, Developing and providing home and industrial electricity smart home appliances Developing and providing eco-products

Nuclear power Connecting energy systems thermal generation CCS generation Smart meter Smart meter Solar panel Rooftop for homes solar panel Power supply network Power supply network Communication network Communication network House commercial facilities/ generation and low-carbon emission condos Energy management power sources Home gateway system (EMS)

Storage LED light EV Storage Home appliances Fuel cell battery battery (information home appliances) Air conditioners Fuel cell HEMS BEMS CEMS Developing and providing energy management systems that cover entire houses, buildings, factories, and communities

Comfortable Promoting environmentally conscious lifestyles which are comfortable and convenient and and convenient in which electricity is supplied stably Illuminator operation Actual amount of electricity Internet Weather information generated in the local community Present time

forecast and the amount of electricity generated today

Air conditioning Water heater operation operation Encouraging users to use electricity CEMS House Stable electricity supply Rendering electricity use and power generation visible Ensuring that energy is used optimally as well as remote control of home appliances (HEMS) in the community (CEMS) Water solutions

Consideration for Contributing to the establishment of sustainable water recycling systems by supporting a wide range of the environment tasks from purifying, distributing, and using water to recycling used water Purifying and distributing water Realizing advanced water Using water monitoring all water treatment technologies using ozone’s processes from water intake to powerful oxidation abilities to discharge remove color and smells as well as inactivate viruses and Water bacteria Water plant Ozone generator plant Monitoring and control system Water-saving home appliances Recycling used water Contributing to water quality sludge, which is usually treated improvement and energy as industrial waste, as biomass fuel by pyrolyzing it water treatment control

Sewage Sewage treatment treatment station System for turning station A novel energy saving aeration sewage sludge into fuel system for nitrogen removal

Comfortable and Ensuring comfortable urban living by allowing people to use water safely with convenient a sense of security as well as taking disaster prevention measures

Rainwater drainage system Ensuring integrated management Rendering water consumption of information on rivers and dam control during torrential rains by visible management as well as swift forecasting localized downpours provision of accurate information 15 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1 Vision and Strategies

Energy solutions Transport solutions

Consideration for Contributing to mitigation of climate change in a wide range of tasks from creating, storing, and using Consideration for Making various means of transport and overall transport infrastructure more environmentally friendly the environment energy to connecting energy systems the environment through a wide range of technologies, systems, and products

Creating energy Storing energy Using energy Energy management cloud BEMS Expressway EMS Monitoring and control Smart SA/PA Station EMS Smart mall Road station HEMS

Photovoltaic power Elevator Lighting Bus EMS generation system Air conditioning Smart house

Automatic ticket gate Expansion of ECPs Signage Hydroelectric Geothermal Wind power Mega solar system power generation power generation generation Smart battery Energy-saving home appliances, Developing and providing home and industrial electricity smart home appliances Battery Smart bus stop storage systems in order to use electricity eectively Developing and providing eco-products Electric bus Hybrid locomotive Light rail new EV/Hybrid vehicle system Regenerative transportation system power EV charger High-e ciency Nuclear power Connecting energy systems thermal generation CCS generation Promoting transport and station energy management systems, which Promoting development and spread of products and systems that make the most of Smart meter Smart meter Solar panel Rooftop for homes solar panel control train operation and power supply and ensure cooperation between regenerative energy generated during deceleration, such as SCiB™ rechargeable Promoting high-e ciency power Power supply network O ces/ Power supply network Communication network Communication network House commercial facilities/ the two, and which store regenerative electricity from trains and renewable battery, high-e ciency motors, and inverters generation and low-carbon emission condos Energy management power sources Home gateway system (EMS) electricity at stations in order to use such electricity for station buildings, trains, and other facilities eectively Storage LED light EV Storage Home appliances Fuel cell battery battery Air conditioners Fuel cell Manufacturing High-e ciency (information home appliances) Comfortable Comfortable travel by rail and car that is less prone to delays, congestion, and accidents HEMS BEMS CEMS and convenient Receiving various services and information even during travel Developing and providing energy management systems that cover entire houses, buildings, factories, and communities

Traffic control system Probe integration Probing system Comfortable Promoting environmentally conscious lifestyles which are comfortable and convenient and VICS center Various types and convenient of sensors in which electricity is supplied stably DSRC-based roadside Illuminator operation Actual amount of electricity wireless system Internet Weather information generated in the local community Present time Dierence between yesterday’s forecast and the amount of electricity generated today Visible light / IR sensor Detection of Image recognition ECU dangerous situations On-board ITS Air conditioning Water heater operation operation Encouraging users Tra c control system Rail operation management Driving assistance system Wide-area route guidance to use electricity Courtesy of Metropolitan system Expressway Co., Ltd. Compliance and Management CEMS House Promoting the development and spread of systems to Supporting the safety, security, and comfort of drivers Safe driving support information monitor and control railway operation and safety as through sensing technologies (e.g., image recognition) (ITS spot services) Stable electricity supply Rendering electricity use and power generation visible Ensuring that energy is used optimally well as motor vehicle ow as well as remote control of home appliances (HEMS) in the community (CEMS) Water solutions Healthcare solutions

Consideration for Contributing to the establishment of sustainable water recycling systems by supporting a wide range of Consideration for Making medical equipment more environmentally friendly through a wide range of technologies, the environment tasks from purifying, distributing, and using water to recycling used water the environment systems, and products Securing of an examination space and Purifying and distributing water Miniaturization Imaging technology reducing system weight by downsizing Realizing advanced water Ensuring e cient control by Using water purication and treatment monitoring all water treatment Realizing both low-dose X-ray photography technologies using ozone’s processes from water intake to and technologies that reduce power Device utility powerful oxidation abilities to discharge consumption remove color and smells as well

as inactivate viruses and Reputation Water bacteria Water X-ray CT system Specimen Ultrasonic purication purication treatment system system plant Ozone generator plant Monitoring and control system Image processing technology Water-saving home appliances Recycling used water X-ray CT system X-ray system Reducing cooling liquid X-ray tube and Making eective use of sewage Contributing to water quality helium (MRI system) image tube sludge, which is usually treated improvement and energy as industrial waste, as biomass conservation through high-e ciency Achieving both high reliability and fuel by pyrolyzing it water treatment control reduction in resource inputs through Increasing added value by linking images between longer life and increased recycling

Sewage Sewage Comfortable modalities, improving examination e ciency, and Advancing Stage to the Next treatment treatment station System for turning station A novel energy saving aeration and convenient reducing energy consumption simultaneously sewage sludge into fuel system for nitrogen removal Creating an environment that enables people to live with a sense of security by providing all services from preventive medicine Comfortable and Ensuring comfortable urban living by allowing people to use water safely with to disease screening, testing systems for early detection and diagnostic imaging systems, and treatment and post-treatment follow-ups Network Notifi- convenient a sense of security as well as taking disaster prevention measures cation Station Achievement diary camera Meal diary Exercise diary Health diary Ultrasonic system Clinic monitor Alert!

Outpatient Drug history General treatment fees handbook hospital Clinic

Results of health Outpatient examinations notebook Notifi- X-ray Hospital cation mammo- Healthcare graphy CT system Health and medical Lifelong health handbook Bed-leaving Rainwater drainage system records Intelligent sensor Wearable Vital Ensuring integrated management Contributing to e cient water discharge Rendering water consumption Health and medical concierge Smartphone of information on rivers and dam control during torrential rains by visible who provides services that meet Signs Sensor Women’s health support System to support cooperation in management as well as swift forecasting localized downpours individual needs Module solutions healthcare among hospitals and clinics Monitoring system provision of accurate information Toshiba Group Environmental Report 2013 16 chapter chapter1 Vision and Strategies 1 Special feature Conservation of Biodiversity

Toshiba Group is carrying out biodiversity conservation activities at 67 locations worldwide. Vision and Strategies

Establishment of China migratory bird networks

Wetlands* White heron* Expansion of ECPs High-e ciency Manufacturing High-e ciency

Establishment of ecosystem Europe networks

Asia Protection of rare trees

Calling in honeybees and butterflies Calling in wild birds Compliance and Management

Narra* White lauan*

2015 target Medium-term plan for the period up to 2015

Toshiba Group aims to minimize the adverse effects of its To achieve the 2015 target, Toshiba Group aims to develop business activities on biodiversity and shift its biodiversity biotopes at 67 of its business and production sites world- policy toward initiatives for improvement to realize an ideal wide. state of environmental management in 2015. These efforts aim to stop the decreases in the kinds of bio-

diversity that each site has decided to protect by 2015 and Developing biotopes at all major Reputation allow for such biodiversity to increase in subsequent years. sites worldwide (67 locations)

■ Minimizing Adverse Effects and Increasing Biodiversity Example (Conceptual Diagram) metrics Improve Flying organisms (e.g., butter ies) Rare aquatic life (e.g., killshes) Rare plants indigenous to a particular region Measuring effects periodically (e.g., Taraxacum platycarpum) 50% 100% Selecting metrics and taking measures 50% 100% Advancing Stage to the Next Conducting biodiversity surveys 50% 100% Indicator species Indicator species 2012 2013 2014 2015 (FY) 2015 2015

The global Aichi Target adopted at the Tenth Meeting of the Development of biotopes will be promoted in three steps: Conference of the Parties to the Convention on Biological biodiversity surveys, selection of metrics and measurement Diversity (COP10) held in Nagoya City, Aichi Prefecture, in of effects. Biodiversity surveys consist of investigations of October 2010 require all signatories to start increasing bio- living organisms and “red lists” in the environs of business diversity by 2020. sites, explorations of biodiversity by experts, and assess- Toshiba Group plans to achieve the Aichi Target about five ments of biodiversity potential at such sites and in neigh- years ahead of schedule. boring areas.

17 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1 Special feature Vision and Strategies

Ecosystem surveys in Americas production site environs

On-site surveys by NGOs Expansion of ECPs High-e ciency Manufacturing High-e ciency Japan Protection of rare flora and fauna

Japanese eight-barbel loach* Daylily* Mikekado pumpkin* Compliance and Management

Killfish Cephalanthera falcata Golden venus chub (Courtesy of Himeji City Aquarium)

* Explained in detail on pages 19-20.

Based on this survey data, Toshiba Group will select living organisms to serve as metrics, take measures to protect and Results for FY2012 increase them, and make periodic measurements of effects, In FY2012, Toshiba Group conducted biodiversity surveys at thereby verifying the appropriateness of the biotope devel- 54 of its 67 sites covered by the project, and the percentage opment process. Under the medium-term plan, the Group of sites surveyed was 81%, significantly exceeding the initial will take these steps at a minimum of 34 of its sites (50%) target of 50%. By region, the percentage was 100% for Asia each year. (excluding Japan and China), the Americas, and Europe;

■ Medium-term plan the percentages for Japan and China were 83% (eight sites Reputation FY2012 FY2013 FY2014 FY2015 not surveyed) and 55% (five sites), respectively. In FY2013, 100% of sites 100% of sites have Toshiba Group will complete biodiversity surveys at the 13 50% of sites surveyed selected metrics 100% of sites have surveyed 50% of sites have 50% of sites have measured effects remaining sites. selected metrics measured effects The 54 sites that have been surveyed will select metrics * 50% = 34 or more sites based on their survey results and gradually carry out biodi- ■ Steps in biotope development versity protection activities. Advancing Stage to the Next Survey Select Region Eligible sites No. of sites % of sites metrics Measure Improve surveyed surveyed Japan 48 40 83%

Investigate organisms living on the premises; investigate IUCN China 11 6 55% and local area Red Lists; onsite inspection by local experts; as- Survey sessment of biodiversity potential for targeted and neighboring areas. Asia 3 3 100%

Select Select relevant metrics on the basis of investigation data; devise Americas 3 3 100% metrics measures to protect and expand the selected metrics. Measure the metrics on a periodic basis. Examples of measure- Europe 2 2 100% Measure ment targets: Number of species of animals, number of animals within each species, number of plant roots, size of planting area. Total 67 54 81% Improvement or enhancement in metrics achieved as a result of Improve periodic measuring.

Toshiba Group Environmental Report 2013 18 chapter chapter1 Vision and Strategies 1 Conservation of Biodiversity Vision and Strategies Initiatives at production sites Example 1-1 Toshiba Komukai Complex (1) Establishment of ecosystem networks centered on production sites The Komukai Complex aims to establish an ecosystem net- Land use is one human activity that has an adverse effect on work that connects Keio University and Yumemigasaki Park to ecosystems. Residential land and factories destroy the living the west and Tama River to the north. A pond in the courtyard of the complex was transformed into a habitat for dragonflies, environments of plants and animals and disrupt wildlife cor- and now Jomon (ancient) lotuses* are grown there. ridors. Therefore, Toshiba Group aims to establish ecosystem networks that connect production sites with their neighbor- Keio University ing areas. Hiyoshi Campus Tama River

Toshiba calls for employees who cultivate fruits such as Expansion of ECPs yuzu (Citrus junos) and sudachi (Citrus sudachi) in their Yumemigasaki Park home gardens to allow some of the larvae of the swallowtail butterflies living on their leaves to grow until they mature into adults rather than eradicating all of them. Toshiba also Toshiba distributes yuzu seedlings free of charge to employees who Komukai Complex want them. We believe that we can contribute to expanding Tsurumi River butterflies’ habitats by calling them into our employees’ 0.00 cm home gardens. Manufacturing High-e ciency 10 cm

Plants (eaten by butterflies) Butterflies expected to be called in (example) 65 cm Before repair After repair Yuzu and sudachi (citrons) Asian swallowtail, spangle, and great Mormon The pond was repaired to have three levels of depth: 0.00, 10, Kumquat Asian swallowtail, spangle, and Chinese peacock and 65 cm. The complex aims to offer diverse pond habitats by making different levels of depth available: 0.00 cm for Jomon lotuses, 10 cm for dragonfly nymphs, and 65 cm for dragonflies. *The Jomon lotus sprouted from a more than 2,000-year-old seed of a lotus excavated from relics in Chiba City in 1951. It is considered to

be the world’s oldest flower. So far, its roots Compliance and Management have been divided and distributed to various parts of Japan and the rest of the world, and the Jomon lotus has been designated by Chiba Citrons Asian swallowtail Asian swallowtail (imago) Prefecture as a natural monument. (caterpillar) Jomon lotus Additionally, the company plans to develop yuzu orchards in part of the green space at each of its production sites and Example 1-2 Toshiba Information Equipment make it a shelter for butterfly eggs laid in employees’ home (Hangzhou) Co., Ltd. gardens and larvae that hatch from the eggs. In the future, Toshiba aims to minimize the number of larvae Toshiba Information Equipment (Hangzhou) conducted a survey of the eco- eradicated at homes and establish an ecosystem network system in the local community where it operates. The Hangzhou Bay wetland for butterflies that connects employees’ homes, local forests, to the east is one of the world’s treasure troves of migratory birds, which travel between Siberia and Australia via East Asia. Many migratory birds can rivers, parks, and so forth with the company’s production be observed even in the environs of the company’s production site as they fly sites as its core. in from the Qiantang River and wetland parks in eastern Hangzhou. In the future, the company will continue to step up efforts to establish an Reputation ecosystem network with its neighboring areas mainly by conserving the willow groves at its production site. To Siberia

Home Toshiba Information Equipment (Hangzhou) Co., Ltd. Hangzhou Bay

River Advancing Stage to the Next Forest Qiantang River

Hangzhou Bay wetland Wetland parks in To Australia eastern Hangzhou Production site

White heron Plants and animals found Home Home near the factory (examples)

Park Willow groves near Reed Dragonfly Honeybee Establishing a network for butterflies that connects employees’ homes, neighboring the production site parks, forests, rivers, and so forth with production sites as its core

19 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

(2) Ex-situ conservation of rare flora and fauna Toshiba Group is promoting an ex-situ conservation* Example 1-6 Toshiba Medical Systems Corp. Vision and Strategies initiative as stipulated in Article 9 of the Convention on Biological Diversity. The presence of many endangered species, such as Tokyo daruma *Measures taken for the recovery and rehabilitation of threatened species and for their re- pond frogs, great purple emperors, Ascalaphus ramburi, and Japa- introduction into their original habitats under appropriate conditions as well as measures nese grass lizards has been confirmed at the company’s production taken for the purpose of complementing in-situ measures (as stipulated in Article 8 of the site and in neighboring areas. The company is striving to survey and Convention) aiming to conserve such threatened species within their original habitats. protect these living organisms with the aim of creating an environment in which as many of them as possible may live.

● Species covered by “red lists,” the existence of which has been confirmed at Example 1-3 Toshiba Keihin Product Operations the site and in neighboring areas (examples)

Japanese eight-barbel loaches are protected within an unused pond at the site. Plans call for these loaches to be returned to Tsurumi River, their Expansion of ECPs original habitat, in the future after they have grown up in the pond.

Ascalaphus ramburi Great purple emperor Ricciocarpus natans (Species designated by (Species designated (Species designated Tochigi Prefecture as by the Ministry of the by the Ministry of the requiring attention) Environment as near Environment as near threatened) threatened) High-e ciency Manufacturing High-e ciency Japanese eight-barbel loach (Listed as endan- Raised in an unused pond gered by the Ministry of the Environment) Northern goshawk Tokyo daruma pond frog Plestiodon japonicus (Species designated (Species designated (Species designated by by the Ministry of the by the Ministry of the Tochigi Prefecture as Environment as near Environment as near endangered type II) Example 1-4 Toshiba Lighting & Technology Corp. threatened) threatened)

● Confirmed insects (examples) Toshiba Lighting & Technology Corp. transplanted daylilies, which are excessively picked in the Koajiro forest of Miura Peninsula, to an open space on-site at the company and succeeded in blooming them. As their seedlings increase in the future, the company will re-plant them in the forest. Compliance and Management Cetonia pilifera Indian fritillary Sympetrum infuscatum

● Natural environment within the site and in neighboring areas

Transplanted to an open space at Blooming daylilies Toshiba Lighting & Technology Plants at the production Large birds fly over above Grassy area Corp. site that are home to plant communities in a snakes and lizards field that has been aban- doned and left uncultivat- ed

Example 1-5 Buzen Toshiba Electronics Corp. Toshiba Information Equipment Example 1-7 (Philippines), Inc. Reputation The company works to conserve Mikekado pumpkins around its production site in cooperation with civic groups. The company strives to conserve five endangered species, including narra, white lauan, and ipil trees, in the environs of its production site and distributes seeds of these trees to nearby schools and suppliers to increase the number of ex-situ conservation sites. Advancing Stage to the Next

Mikekado pumpkin

Cultivating and harvesting pumpkins in coop- Narra White lauan Ipil tree eration with local elementary schools Tradition says that what are now called Mikekado pumpkins were Narra, the national tree of the Philippines, once grew through- first brought by the Portuguese to the Mikekado area in Buzen City, out the country, but owing to excessive felling, it is now desig- Fukuoka Prefecture, via Oita Prefecture over 400 years ago. They are nated as an endangered species. Narra trees were felled mainly said to be the oldest type of introduced pumpkins in Japan. because they were highly valuable as construction materials; it Since the Mikekado pumpkin, which retains the color, shape, and is said that many of the felled trees were exported to Japan. taste of the ones brought to Japan in the 17th century, is valuable It is highly significant that Toshiba Information Equipment culturally, activities are being carried out to preserve this vegetable (Philippines), a Japanese-affiliated company, protects narra and hand it down to future generations. and expands narra forests.

Toshiba Group Environmental Report 2013 20 chapter chapter1 Vision and Strategies 1 Conservation of Biodiversity

Range of travel of plants and animals in take care of and observe plants and animals on a daily basis Vision and Strategies ex-situ conservation and detect any abnormalities early on. In addition, since In order to ensure ex-situ conservation, it is necessary to pay security is maintained at production sites, there is practically attention to the range of travel of plants and animals. For ex- no risk of endangered species being stolen by third parties ample, it is not desirable to protect Hokkaido’s endangered or eaten due to unintended growth in populations of organ- species at a factory in Kyushu, which has a different climate and isms such as raccoons or deer. From the viewpoint of con- living environment. How far, then, can endangered species be serving biodiversity, corporate production sites can become transferred? reserves for extremely important plants and animals. One guideline is to keep them within a river basin. “Basin” * In-situ conservation (Article 8 of the Convention on Biological Diversity) refers to activities to con- refers to the area of land where rivers catch the rain that falls serve the ecosystem as a whole. Examples include conservation of forests through afforestation and thinning, preservation of satoyama, cleaning of rivers, and management of tidal flats. “Nature and can be considered to be a single unit of an ecosystem. conservation activities” usually refer to in-situ conservation as defined above. Expansion of ECPs Therefore, Toshiba Group has a principle of moving plants and animals within the same basin when its business and production sites do so for the purpose of ex-situ conserva- Toward mainstreaming biodiversity tion. Since the need to conserve biodiversity is less well known In Japan, 109 first-class rivers and their valleys occupy about than the needs to address climate change and waste man- 70% of the country’s land, and Toshiba Group has confirmed agement, efforts are underway to make biodiversity conser- which valley each of its domestic businesses and production vation a mainstream part of environmental activities around sites are located in. Also at its business and production sites the world. outside Japan, the Group promotes ex-situ conservation as Manufacturing High-e ciency In general, mentioning biodiversity conservation may re- necessary while referring to maps of basins and vegetation mind one of, say, protecting the tropical rainforests in the distribution charts for each region, marshland characteris- Amazon valley or preserving satoyama far from urban areas. tics, and other data as well as paying attention to ecosystem When working to establish an ecosystem network with units. business and production sites as the core and to conserve Significance of promoting ex-situ conserva- rare flora and fauna ex-situ, Toshiba Group attempts to carry tion in production site environs out straightforward initiatives that are close to its employees and their families as well as to local residents so that Toshiba Group considers corporate production sites to be they can work on such initiatives together. Toshiba Group suitable for ex-situ conservation for two reasons. First, such believes that allowing people to make contact with nature

sites can be managed by employees. Second, it is less likely Compliance and Management and touch living organisms in their daily lives, whether they that endangered species will be stolen or excessively hunted are in office districts, residential areas, or industrial zones, by third parties or that they will be eaten by natural predators leads to a change in biodiversity awareness, which in turn or introduced invasive species. provides a shortcut to mainstreaming biodiversity. In in-situ conservation*, which is widely practiced today to Human society benefits from ecosystems; these blessings conserve biodiversity, it is difficult to carry out nature con- from nature are known as “ecosystem services.” Ecosystem servation activities and perform management work on the services can be divided into three broad categories: provi- spot every day. At production sites, however, employees can sioning, regulating, and cultural.

■ Map of basins of first-class rivers

(109 river basins: the names of 28 are written on the map and the other 81 are listed in the table)

Teshio Shokotsu River Hime River Yamato River Oze River Honmyo River

River Reputation Yubetsu River Kurobe River Maruyama River Yoshino River Kikuchi River Tokoro River Joganji River Kako River Naka River Shira River Shiribetsu River Ishikari Shiribeshitoshibetsu River River Abashiri River Jintsu River Ibo River Doki River Midori River Tokachi Kushiro Rumoi River Sho River Kino River Shigenobu River Kuma River River River Mu River Oyabe River Kita River Hiji River Oita River Saru River Tedori River Chiyo River Monobe River Ono River Naruse River Kakehashi River Tenjin River Niyodo River Banjo River Iwaki River Natori River Kano River Hino River Onga River Gokase River Takase River Omono River Abe River Takatsu River Yamakuni River Omaru River Yoneshiro Mabuchi River Koyoshi River Oi River Yoshii River Chikugo River Kimotsuki River River Advancing Stage to the Next Aka River Kiku River Asahi River Yabe River Kuji River Toyo River Takahashi River Matsuura River Kitakami Naka River Yahagi River Ashida River Rokkaku River River Mogami Arakawa River Shonai River Ota River Kase River River Tama River Suzuka River Hii River Tsurumi River Kumozu River Kuzuryu River Agano River Sagami River Kushida River Saba River Shinano Abukuma Arakawa River Miya River E (Go) River River River Tone River Seki River Yura River Kiso River Yodo Tenryu Fuji River River River

Sendai River

Watari River Shingu River Oyodo River Source: Ministry of Land, Infrastructure, Transport and Tourism

21 Toshiba Group Environmental Report 2013 chapter chapter1 Vision and Strategies 1

■ 採掘から製品までの流れ ■ Ecosystem services ■ Flow of processes from mining to products

(1) Provisioning Supply of materials such as food, Vision and Strategies services water, wood and fuel Mine Ecosys- (2) Regulating ser- Waste decomposition, water purifica- tem services vices tion and weather regulation Refiner Recreation as well as spiritual, cul- (3) Cultural services tural and intellectual benefits Parts manufacturer

In order to maintain and improve provisioning and regulating Product manufacturer services, it is necessary to protect nature and ensure in-situ conservation. At the same time, Toshiba Group aims to contribute to cultural services with the two policies it is advancing. Further, the ■ Example of calculating the MiBiD base unit (MiBiD/kg) Group believes that enhancing these cultural services is the most for each mine Expansion of ECPs essential ingredient to accelerate the mainstreaming of biodiversi- Which mine where we ty globally in the future. extract raw materials has the Going forward, Toshiba Group will continue striving to conserve least impact on biodiversity? biodiversity around the world in cooperation with a wide range of stakeholders. Calculation of MiBiD Enlargement Land use data

Vegetation coe cient Supply chain initiatives Sanctuary data

Sanctuary coe cient

Data on resource Manufacturing High-e ciency In addition to conventional green procurement, procuring raw extraction Resource extraction coe cient materials in consideration of the ecosystem will be one important Mine The MiBiD base unit reects the biodiversity of the element of future biodiversity conservation initiatives. Toshiba is MiBiD base unit surrounding area of the mine MiBiD (e.g., the presence or absence working to develop tools that can be applied to assess the effects Sanctuary of sanctuaries).

of procured materials. Note: MiBiD™: Index of Mining Impact on Biodiversity ● Index of Mining Impact on Biodiversity (MiBiD™) Toshiba Group has developed the MiBiD™ method to quantify the impacts of materials that constitute its products on the biodiversity Contributions to society of areas adjacent to mines when they are extracted. The Group has Toshiba Group’s 1.5 Million Tree-Planting Project contributes created a database of minerals extracted from mines around the to realizing ecosystems that are suitable for the growth of world that records the relationships between the production scale Compliance and Management various organisms by pruning and thinning trees for prop- of the mines and the surrounding reserves and vegetation using er forest management. Furthermore, the Group provides MiBiD/kg as the base unit. Until recently, this method covered human resource development services for those who love iron, copper, and aluminum, which are all used in large quantities nature, such as tree-planting events for employees, nature globally and indispensable to electric products, and now the MiBiD observation programs and training for nature observation database includes zinc and lead as well. Application of MiBiD™ may instructors. enable us to procure materials while taking mining’s effects on biodiversity into consideration. In order to identify the mines from which materials used for products and at business and production sites are procured, it is essential to obtain supply-chain information (e.g., the names of mines from which materials are extracted and the amounts of minerals used). Toshiba Group believes that in the future, if an environment that enables us to obtain such informa- Nature observation Afforestation

program Reputation tion becomes available, MiBiD™ will contribute to building our supply chain while taking biodiversity into consideration.

Tsurumi River Basin Networking (NPO) of great expectation and hope as a new place that provides a living Representative Director environment to neighboring organisms that can fly, or as a candi- Professor Emeritus of Keio University date for ex-situ conservation for those which are endangered in Mr. Yuji Kishi the local ecosystem and cannot fly. Furthermore, nature reserves of corporate sites are characteristically managed strictly because they Advancing Stage to the Next are placed under rigorous security management. If we just realize this, the logical conclusion is that corporate sites can be centers In other words, mainstreaming biodiversity means that all individu- of hope for the conservation and restoration of biodiversity in the als and organizations confirm the crisis of and hope for biodiversity ecological spaces (including river systems and their valleys, hills, in their daily lives and business activities, find ways of contributing etc.) where they are located. to conservation and reconstruction, and implement these on a The biodiversity crisis will be overcome through diverse ways and daily basis. The potentials of production sites are drastically being means when individuals and organizations figure out, in all aspects reconsidered today from this new perspective. For example, a of their daily lives and business activities, and recognize this as a review of production sites in the context of vast expanses of land challenge that they should solve and take action for on their own (ecosystems) such as nearby river systems and their basins indi- initiative in cooperation with their local communities. I sincerely cates that each site is a party to the crisis and represents hope for hope that Toshiba, which has brilliantly realized this simple, clear, its ecosystem because it is an important part of the ecosystem and and powerful truth and started a local and global biotope strategy, fulfills a role unique to the area where it is located. Also, it is a focus will play an active role in mainstreaming biodiversity.

Toshiba Group Environmental Report 2013 22 chapter2 Chapter 2

Expansion of ECPs Vision and Strategies Aiming to achieve the highest level of environmental performance, we strive to expand the creation and widespread use of Excellent ECPs. Expansion of ECPs

Promoting the creation of products with the highest INDEX level of environmental performance Summary of activities in FY2012 Toshiba Group is making efforts to achieve the highest level of environmental performance for all products that we de- Creation of Excellent ECPs P25 velop. We will accelerate the creation of ECPs with high lev- Manufacturing High-e ciency Sales of Excellent ECPs els of environmental performance in all product areas in FY2012 668.8 bil. yen through “Greening of Products” initiatives aimed at minimizing the environmental impact of products throughout their entire life cycles and “Greening by Technology” initia- Mitigation of Climate Change P27 tives aimed at providing a stable power supply and mitigat-

Promoting CO2 mitigation ing climate change worldwide using low-carbon energy through provision of eco-products 6.80 mil. t-CO2 supply technologies. At the same time, we will promote the development of localized products to meet the individual- Promoting CO2 mitigation through ized needs of different countries and areas, including devel-

low-carbon energy technologies 450 mil. t-CO2 Compliance and Management oped countries as well as developing countries, where environmental impact is likely to increase as a result of economic growth. E cient Use of Resources P32  Toshiba’s ECP expansion strategy Promotion of the 3Rs throughout the Minimizing environmental impact by improving environmental entire product life cycle performance and developing global business Resource usage reduction 280,000 t Development across Amount of recycled plastics used 2,279 t Greening of all product groups Greening by Products Technology in FY2012 Two wheels

Management of Chemicals in Products P35 Development of products with advanced environmental performance × Development of localized products Reputation Reduction of use of speci ed chemicals ● Aiming to create products with the highest level of en- Promotion of use of alternatives 17 product vironmental performance at the time of product release groups to PVC and BFR To create ECPs, Toshiba Group sets “eco-targets” to develop products with the highest level of environmental performance in the business strategy formulation and product Product Eco-e ciency P37 planning stages. Then, in the product development and Introduction to Toshiba’ s original design stages, we make environmental assessments of the Advancing Stage to the Next product assessment indicators Publication of products to ensure that they meet the Toshiba environmen- a new pamphlet tal standards. During the environmental assessments, we check whether the products comply with laws and regula- ［ファクターT］10年間のあゆみ環境ビジョン 2050 第9回LCA日本フォーラム表彰みんな奨励賞（2005年以降、社外表彰を連続受賞中）で進もう！実現へ［ファクターＴ］のすゝめ発行／［ファクターＴ］のすべて発行予定（於第22回東芝グループ環境展）みんなで進もう！東芝ecoスタイル第8回LCA日本フォーラム表彰環境効率部門・奨励賞／LCA部門・奨励賞 2012 東芝ecoスタイル環境効率アワード2010新しい豊かさの指標特別賞第7回ＬＣＡ日本フォーラム表彰会長賞 2011 新しい豊かさの指標

編集後記［ファクターＴ］と歩む発行第5次環境アクション環境効率アワード2009 会長賞 2010 プラン策定［ファクターＴ］の冊子シリーズ第７弾は、［ファクターＴ］［フ第6回ＬＣＡ日本フォーラム表彰ァクター会長賞］読本ァの１０周年を記念した特別編です。 T ［フクターT］すゝめ環境効率の国際規格（ISO14045）発行 2009 tions as well as meet the ECP standards (the Toshiba environ- 実さん一家のお話は、まだまだ続きます。ご意見・ご質［ファクターＴ］とともに発行（評価事例として［ファクターT］掲載）問をお寄せください。皆様のご意見を反映させて、本冊環境効率アワード2008 会長賞子をさらに改善していきたいと考えています。どうぞよ 2008 ［ファクターＴ］の現在発行ろしくお願いします。環境効率アワード2007 局長賞株式会社東芝環境推進部第4回ＬＣＡ日本フォーラム表彰会長賞 2007 環境ビジョン2050策定、「ファクター１０」を掲げるファクター標準化が電機8社に拡大環境効率アワード2006 奨励賞 2006 電機5社によるファクター標準化が実現 IT（情報技術）の環境効率ガイドライン策定・公表［ファクターＴ］の広がり（実践編）発行 2005 環境効率アワード2005 奨励賞用紙での配慮［ファクターＴ］のお話 2004 製紙原料として国産材を活用第4次環境アクションプラン策定、ファクターを環境経営指標に京都議定書で日本は「温室効果ガスの排出量（基本編）発行 mental standards) in all three aspects throughout all stages 6％削減」を掲げていますが、その約3分の2にあたる3.9％を、森林によるCO2吸収が担っています。国産材を積極的に使うと、元気な森林 2003 Ａ-（2）-060002 が育ち、CO2をたっぷり吸収できます。この冊環境効率指標［ファクターＴ］導入 FSC認証用紙の使用子は森林に感謝（サンキュー）しながら国産材「適切に管理された森林からの木材（認証材）」を原料とを製紙原料として活用し、国内の森林によるした紙として、FSC（ForestStewardshipCouncil、森 CO2吸収の拡大に貢献いたします。林管理協議会）から認証を受けた紙を使用しています。

間伐に寄与する紙の使用東芝グループは、森の町内会システムを活用し、青森県・三沢市との間伐事業を支援して、豊かな森の創造と間伐材の〒105-8001 東京都港区芝浦1-1-1 利用促進に取り組んでいます。〒105-8001 東京都港区芝浦1-1-1 お問い合わせ先お問い合わせ先印刷での配慮環境推進部環境推進部水無し印刷 Non-VOCインキの使用 TEL : 03-3457-2403 FAX : 03-5444-9206 TEL : 03-3457-2403 FAX : 03-5444-9206 印刷工程において刷版の版材がインキを揮発性有機化合物、VOC（Volatile E-mail : [email protected] E-mail : [email protected] はじくという特性を利用し、水を使用せずに Organic Compounds）を含まない、植 URL http://www.toshiba.co.jp/env/jp/index_j.htm 印刷する「水無し印刷」を採用しています。物油100%のインキを使用しています。 URL http://www.toshiba.co.jp/env/jp/index_j.htm of their life cycles. In the product approval stage, we check 東芝グループの取り組みについて東芝グループの取り組みについて 2013FEB（TBLS） 2012DEC（TBLS） the level of achievement of the eco-targets and whether the products are in compliance with the ECP standards, certify- ing those products with the highest level of environmental performance. * Environmentally Conscious Products (ECPs) are designed to minimize environmental impact throughout all stages of their life cycles, including during procurement of materials, manufacture, distribution, use, disposal and recycling.

23 Toshiba Group Environmental Report 2013 chapter2 Chapter 2

 Expansion of creation of Excellent ECPs  Sales of Excellent ECPs Vision and Strategies Environmentally conscious products certified by 1,800(billion yen) Expansion of ECPs Level of environmental consciousness Toshiba as having the highest level of environmental performance in the industry

6-fold increase in sales of Expansion of sales Excellent ECPs in 4 years Result Plan 800 Aiming to achieve the highest level of Excellent ECPs 668.8 Products with the 500 highest level of major 296 environmental performance, we strive environmental performance

2011 2012 2013 2014 2015 (FY) to expand the creation and widespread ECP High environmental performance (eco-targets)

Aiming to increase product eco-efficiency by Expansion of ECPs use of Excellent ECPs. Achievement of 3.4 times in FY2015 ECP standards Products that do not meet the ECP Viewing the product eco-efficiency (details on page 37) as standards are in principle not shipped. Assessment of product an important indicator, Toshiba Group is promoting activi- 2011 2015 environmental ties to create ECPs. performance ● Results of FY2012 and future initiatives Three elements of ECPs By the end of FY2012, we calculated the Factor values (de- Mitigation of E cient use of Management of gree of improvement in eco-efficiency) for almost all Toshi- climate change resources Chemicals ba Group products. By enhancing the value of products and Manufacturing High-e ciency Reductions in power Reductions in the Reductions in the by reducing their environmental impact, Toshiba Group was consumption use of raw materials use of speci ed Reductions in Use of recycled hazardous able to achieve a Factor of 2.89, which far exceeded the goal standby electricity materials substances Visualization of Easy to disassemble Green procurement of 2.8. power consumption Reductions in the Distribution of We aim to increase the product eco-efficiency to 3.0 times the Energy-saving mode use of packaging information on Shipment mode, etc. materials chemicals level of the base year (FY2000) in FY2013 and 3.4 times the Reductions in the Compliance with use of supplies chemical regulations level of the base year in FY2015. Upgrades, longer in dierent useful lives, etc. countries, etc.

Value of a product Product eco-e ciency Compliance and Management Target and Result of Creation of Environmental impact of a product Excellent ECPs ● Results of FY2012 and future initiatives Result for FY2012 Plan In an effort to enhance the creation of Excellent ECPs, Toshiba 2.89 times the level of FY2000 Group has introduced sales of Excellent ECPs as a new indica- 2.89 2.79 3.40 3.20 tor. As a result of expanding the range of certified products in 2.44 3.00 Result 2.13 2.80 the areas of social infrastructure and electronic devices, Toshi- 1.9 2.05 2.38 ba Group’s sales of Excellent ECPs in FY2012 totaled 668.8 bil- 2.20 1.88 2.03 lion yen, greatly exceeding the goal (500 billion yen). We will 1.00 1.74 Goal for FY2015 accelerate the creation of Excellent ECPs in the areas of solu- 3.40 times the level of FY2000 tions and system products to achieve sales of Excellent ECPs totaling 1.8 trillion yen in FY2015. 2000 2007 2008 2009 2010 2011 2012 2013 2014 2015 (FY) Reputation * Factors of products whose values have not been calculated were assumed to be 1.  Process of creating Excellent ECPs

Feedback for the development of new product  Environmental effects based on LCA  Review of benchmarking results and development specifications Environmental label (third-party certification) Business Manufacturing

Product Advancing Stage to the Next strategy planning Development and design and shipment ENERGY STAR, EU Ecolabel, China Environmental Labeling, Eco-leaf (Japan), QFD LCA Product etc. approval Eco-efficiency Disclosure of and Factor information on * * environmental ECP performance standards Information on individual

- Toshiba Green products regarding speci c

law and law aspects of environmentally

environmental advertisements procurement

regulations We make sure that products meet

and environmental conscious product designs Environmental Environmental standards the Toshiba environmental Information disclosure disclosure Information Compliance with Compliance standards in all three aspects of

assessments of products assessments ECPs throughout all stages of their

Customer Customer product life cycles. We check the level of achievement Excellent ECPs Eco- requirements - Checking to see that products of eco-targets and compliance Based on technological trends and trends of other comply with laws and regulations with the ECP standards. targets companies, we set “eco-targets” for the development of The highest level of products with the highest level of environmental environmental performance in Data update companies’ products companies’ performance in the industry at the time of product release. the industry in terms of major Benchmarking of other functions when released * For the details of QFD and LCA, see page 37.

Toshiba Group Environmental Report 2013 24 chapter2 chapter2 Expansion of ECPs Creation of Excellent ECPs

Group-wide efforts for the creation of products with Vision and Strategies the highest level of environmental performance ● Results of FY2012 Toshiba Group is striving to create “Excellent ECPs” with the industry’s highest level of major environmental performance and to promote their use. In FY2012, we certified 72 products as “Excellent ECPs.” Sales of “Excellent ECPs” for FY2012 totaled 668.8 billion yen, accounting for approximately 12% of all group companies’ sales. ● Future initiatives We will increase the number of Excellent ECPs not only in the areas of home appliances and digital products, but also in the area of social infrastructure products and achieve sales of 1.8 trillion yen in FY2015.

● Products certified as Excellent ECPs in FY2012 Expansion of ECPs Audio-visual and digital products LCD TV Ultrabook™ Blu-ray disk recorder Tablet

40/32PB200 (April/May 2012 release, developing countries) dynabook R632 DBR-T350/T360 (November 2012 release) AT700 (October 2011 release) 40/32PU200 (July 2012 release, developing countries) (June 2012 release) High-e ciency Manufacturing High-e ciency ● The highest level of energy-saving performance* ● The highest level of energy- and ● The highest level of resource- resource-saving performance* (T350: Annual power consumption of 22.7 kWh) saving performance* (T360: Annual power consumption of 23.5 kWh) (ENERGY STAR TEC value★: 15.8 kWh) (Body weight: approx. 535 g; ● The highest level of resource- (Body weight: approx. 1.12 kg) ● The highest level of resource-saving Thickness: approx. 7.7 mm; saving performance* ● EPEAT Gold rating (22 points) performance* Body volume: approx. 347 cm3) (T350 body weight: 2.6 kg) (32PB200/PU200 body weight: 5.5 kg) (U.S. model) (40PB200/PU200 body weight: 8.0 kg) (T360 body volume: 4,605 cm3) ★ TEC value: Power consumption calculated based on the standard conditions for assessing appropriateness for the International Energy Star Program

Home appliances

Home IT system Refrigerator/freezer Washing machine with dryer Compliance and Management

HEMS/Feminity (March 2012 release, Japan) GR-F56FXV, GR-F51FXV, TW-Z9500/Z8500 (October 2012 release) GR-F48FS, GR-F48FX Energy monitor Water consumption Gas consumption 10:48 Nov. 1 (Thurs.) (46 yen) (168 yen) (GR-F51FXV, November 2012 release) (Consumption from 9:00 to 10:00) Electricity sold Charging Electricity purchased ● Best-in-class energy-

Electricity generated Electricity used saving performance Battery remaining ● The lowest level of annual Power consumption: 620 Wh Discharging Today’s data Current values (When washing and drying Homepage Detailed Graph Calendar Power Download Help power consumption in its information consumption product class 6 kg of clothes) ● Use of ECHONET Lite before other companies (180 kWh/yr. for GR-F51FXV) Water consumption: 49 L ● Support for energy saving through visualization ● The industry’s lowest level (When washing and drying ● Winner of the FY2012 Eco-Products Award for of power consumption (for 6 kg of clothes) Outstanding Products defrosting) (Eco-Service Category) (93 W for GR-F51FXV)

LED light bulb LED lighting equipment Microwave oven Reputation

LDA9L-G and LDA9N-G LDA6L-H-E17/S LEDD-50103W-LD9 and other models ER-KD520 and other models (May 2012 release) LDA6N-H-E17/S (July 2012 release) (September 2012 release, Japan) (July 2012 release) ● The highest level of energy-saving Wide light distribution Luminosity equivalent to a Luminosity equivalent to performance* type with luminosity 50-W mini krypton HID100W (Power consumption (warm up function): 52 kWh/yr.) equivalent to a bulb 60-W lightbulb ● A unique product that

● The highest level achieves high luminosity Advancing Stage to the Next ● The highest level of luminous with 60-W of power of luminous efficiency* Luminous efficiency efficiency* (110.7 lm/ W ) (73.3 lm/W) (92 lm/W) ENE-FARM, a fuel cell for residential use Photovoltaic power generation system for residences Multi air conditioner system for developing countries

TM1-AD (March 2012 release, Japan) (December 2012 release, Japan) MiNi-SMMS MCY-MHP1204HT8-C and other models (November 2012 release) ● The highest level of ● The world’s highest level of energy-saving perfor- module conversion effi- mance* ciency, 20.1%* ● Achieved the industry’s (General energy efficiency: 94%) (Nominal maximum output capacity: highest level of IPLV (5.65)* ● 250 W) (China’s energy efficiency The highest level of standard) resource-saving perfor- ● mance* The lightest weight in the (Body weight: 94 kg) industry* (164 kg) (Durability: 10 years) * As of when the product was released on the market; this result does not guarantee the current status of the product. 25 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs

Industrial and social infrastructure products Vision and Strategies Combined cycle thermal power generation system X-ray CT system Renewal of existing elevator (Japan and elsewhere) Aquilion ONE™ / ViSION Edition ELFRESH (June 2012 release, Japan) (July 2012 release, Japan) ● The highest level ● The highest level of ener- ● The highest level of * of efficiency* energy- and resource- gy-saving performance (≥ 62% (lower heating saving performance* (Reduction in power consumption of at most 50%) value basis)) (Test efficiency, footprint, body weight) ● No oiling required for ● FY2012 Eco-Products guide rails Award for Outstanding ● Chemical substance Products reduction (Eco-Products Category) (without mercury) Expansion of ECPs Traceability solution Electric propulsion system for ship Escalator

PQTMeister® (July 2012 release, Japan) Inverter control system, power generator and propulsion motors Green-concept escalator (delivery in December 2012, Japan) Kindmover Main switchboard Crossboard (propulsion/ cargo/bow thruster) Bow thruster motor (October 2012 release, Japan) Diesel generator PQTMeister Centralized Survey Cargo pump motors information report control Line-shaft CRP Converter for propulsion and High-e ciency Manufacturing High-e ciency Electric propulsion auxiliary systems motors ● Resource-saving features (footprint: reduced from 2.1 m2 to 1.7 m2; ● A unique package product in the safety qual- weight: reduced from 2.0 tons to 1.5 tons) ● The highest level of energy- ity area saving performance* ● Energy-saving features (20% improvement in fuel efficiency) ● The lowest environmental impact during This unique product reduces the number of generators required to (Reduction in engine energy consumption system construction* start a vessel to one. of at most 40%) Motor/Inverter for hybrid vehicles Circulation heating pump unit High-efficiency induction furnace

For U.S. customers (mass production from 2012) CAONS140 High-efficiency induction furnace, Ele-save furnace

HWC-H1401S (Shipment in December 2012) Melting (April 2012 release, Japan) chamber

● The highest level Working Compliance and Management ● Maximum leaving of energy-saving board water temperature: Shield board and performance* water-cooled coil 90°C (Melting energy per (Industry first) Iron core unit production: ● The highest level of energy-saving Coil ● The highest level of 472 kWh/t) performance* energy-saving perfor- (Maximum motor efficiency, power density) mance* (COP 3.5/leaving water temperature: 65°C) Industrial camera Color MFP Paper reuse system POS terminal IK-TF5P2/TF7P2 e-STUDIO2050C/2550C Loops QT-100 (September 2012 release, Japan) e-STUDIO2051C/2551C (February 2013 (July 2011 release, Japan) (July 2012 release, developing countries and else- release, Japan, Europe and where) developing countries)

● The highest level of Reputation resource-saving performance* ● ● The highest level of energy- (Body weight: 57 kg) ● A unique product that simultane- The highest level of resource- saving performance* ously removes colors, sorts data saving performance* TF5P2/TF7P2 and creates electronic data (Body weight: 14.5 kg) (Power consumption: 3.5 W / 3.1 W) ● Minister of the Environment’s ● The highest level of resource- Award for Global Warming saving performance* Prevention Activity (Body volume: 151 ml; Body weight: (December 2011) 158 g) Advancing Stage to the Next Electronic devices and parts Magnetic materials for cryogenic regenerator matrices Compressor

HoCu2 (April 2001 release, Japan) A1 dual compressor (for home air conditioners, Japan) ● The highest level of resource-saving performance* ● Minimum power consumption: 55 W ● Mitigation of climate change (When mounted with an air conditioner) (Reduction in CO2 emissions as a result of eliminat- ● Winner of the FY2012 Award of ing use of helium as a supplementary liquid) the Japan Society of Mechanical ● Management of hazardous chemicals Engineers (reduction in use of lead) ● Product with a global patent

* As of when the product was released on the market; this result does not guarantee the current status of the product. Toshiba Group Environmental Report 2013 26 chapter2 chapter2 Expansion of ECPs Mitigation of Climate Change

In order to promote developments aimed at mitigating climate change, Toshiba Group assesses the entire life cycle of Vision and Strategies products. We will reduce CO2 emissions in a wide range of business areas, from products for supplying energy to those for using energy, in order to contribute to mitigation of climate change. ● Future initiatives Two initiatives on mitigation of climate change Toshiba Group will continue to reduce CO2 emissions across all its products by identifying key factors that contribute to With a view to mitigating climate change, Toshiba Group reducing CO2 emissions and by sharing advanced examples is striving to reduce CO2 emissions through two initiatives: and core technologies among group companies. At the the “Greening of Products” initiative aimed at developing same time, we will expand our business in global markets products by setting eco-targets for mitigation of climate for home appliances, such as digital products that use sub- change to improve major environmental performance, and stantially less energy and LED light bulbs that have large en- the “Greening by Technology” initiative aimed at develop- Expansion of ECPs ergy-saving effects, as well as for social infrastructure prod- ing energy supply technologies. ucts—especially in markets in emerging countries where there is a rapidly growing demand for products that can Reducing CO2 emissions through the “Green- ing of Products” initiative achieve great reductions in CO2 emissions. Through these measures, we aim to achieve a reduction in CO2 emissions of Toshiba Group’s products cover a wide range of categories 15 million tons by FY2015. from consumer electronics to power generation plants, and ■ CO2 emissions from these products in different stages of Breakdown of reductions in CO2 emissions (FY2012) their life cycle vary from one product to another. Under the Manufacturing High-e ciency Other Digital products Fifth Environmental Action Plan, we will continue to evalu- 1% 12% Electronic ate products throughout their entire life cycle. At the same Total reduction devices 4% time, we will focus our efforts on reducing environmental in CO2 emissions Home Social impacts during customers’ use of products, which has a appliances 6.8 infrastructure 76% million t-CO2 7% large effect on the environmental efforts of Toshiba Group as a whole, and further enhance the annual CO2 emissions reduction effect that may be achieved if conventional prod- By business segment ucts are replaced by eco products. ● Results of FY2012 ■ Breakdown of reductions in CO2 emissions by area (FY2012) Since FY2010, we have set eco-targets regarding the mitiga- Compliance and Management Europe (12%) Japan (55%) United States (5%) tion of climate change in order to develop products with the 0.79 million t-CO2 3.76 million t-CO2 0.33 million t-CO2 highest level of environmental performance. In FY2012, we were able to reduce CO2 emissions by 6.8 million tons per year by offering newly developed products throughout the world. Total

6.8 million t-CO2 Other areas (1%) ■ Breakdown of reductions in CO2 emissions (FY2012) 0.07 million t-CO2

Result Plan 15.0 (million t-CO2)

9.0 Asia (8%) China (11%) 0.75 million t-CO2 Products manufactured for 6.8 0.55 million t-CO2 no speci c areas 6.0 (including parts) (8%)

3.4 Reputation 0.55 million t-CO2

2011 2012 2013 2014 2015 (FY) * The photos is for illustrative purposes only.

■ Percentages of CO2 emissions from different stages of the life cycle of Toshiba Group’s products

Recycling Procurement Manufacturing Distribution Use Disposal of materials microSD memory card Advancing Stage to the Next Mobile notebook PC Manufacturing Automatic ticket gate X-ray CT system SSD LCD TV IA server Elevator Procurement of materials Color MFP Drum-type washing machine with dryer Refrigerator Diagnostic ultrasound system POS system EcoCute Bulb-type LED bulb Use Home air conditioner Transformer Industrial air conditioner 0% 20% 40% 60% 80% 100%

27 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs

Example 2-1 Saving energy with a tiered storage system Reducing CO2 emissions through “Greening by

Technology” initiatives Vision and Strategies

As cloud computing becomes more widely used, energy use To achieve the goals of Environmental Vision 2050, Toshiba also increases due to expansion of total data capacity. To cope Group is promoting initiatives aimed at providing a stable with this dilemma, Toshiba Group has developed a tiered power supply and mitigating climate change through its storage system that is constructed by combining high-perfor- low-carbon energy technologies. We are working to devel- mance Enterprise SSDs*1 and low-cost, large-capacity HDDs*2 . op and promote power generation technologies that use a This tiered storage system provides access performance wide variety of types of renewable energy, including pho- approximately 7.5 times higher than a conventional storage tovoltaic, hydroelectric, geothermal and wind power. At the system comprised only of Enterprise HDDs. The system also re- same time, we are also working to improve the efficiency of duces the number of drives by approximately 64% and power thermal power generation technology and to commercial-

consumption by approximately 55%, thereby contributing to ize carbon dioxide capture and storage (CCS) technology, Expansion of ECPs cost reduction and mitigation of climate change (percentages as well as to develop a new thermal power generation cycle calculated by Toshiba). that will make it easier to capture CO2 as well as nuclear power generation technology that ensures a higher level of safe- *1 Enterprise SSD : Enterprise Solid State Drive. A flash memory drive for corporate use ty. In the area of power distribution systems, we are striving *2 HDD : Hard Disk Drive to develop various technologies based on our know-how acquired through many experimental projects. Our goal is to create smart grids (next-generation power distribution

Storage system that supports cloud computing networks) designed to optimize the balance between ener- Manufacturing High-e ciency gy supply and demand by making use of renewable energy. We will further promote the development of smart-grid As cloud computing storage systems become more widely used, total data technologies in order to realize smart communities, which Data explosion capacity is predicted to increase more than ten times the present level by 2020. involve water, transportation and healthcare infrastructure Although storage systems can be (details on page 13). extended to achieve the required capacity, this will also increase ● Results of FY2012 and future initiatives environmental and management costs. Total capacity In the Fifth Environmental Action Plan, to start initiatives in

2010 2015 2020 (Year) the area of energy use, we added a new activity item represented by two indicators: sales of energy-related products

and amount of reduction in CO2 emissions. In FY2012, sales Compliance and Management fell short of the goal set in the initial demand plan. However, due to an increase in sales of high-efficiency power generation products, we were able to achieve the goal regarding Storage system used for data reduction of CO2 emissions. We will contribute to providing center, etc. a stable supply of power and mitigating climate change with the aim of achieving sales of 1.9 trillion yen for energy-related products and a reduction of 490 million tons in CO2 emissions by FY2015. Benefits of a tiered storage system (calculated for a 300-TB system) ■ Sales for energy-related Products Conventional storage system Tiered storage system Plan (trillion yen) Result 1.9

eSSD (1.5 TB) 10 units Tier0 Reputation 1.49 High-speed High-speed HDD 1.36 334 units 50 units 1.32 HDD (900 GB) Tier1 1.25 (900 GB) Large-capacity HDD (400 TB) 60 units Tier2

Power savings No. of drives Access performance

eSSD eSSD eSSD 2011 2012 2013 2014 2015 (FY) High-speed HDD High-speed HDD High-speed HDD Large-capacity HDD Large-capacity HDD Large-capacity HDD Advancing Stage to the Next

approx. 55% approx. reduction ■ 2 approx. 64% 7.5 times Reduction in CO emissions for energy-related products reduction faster Result Plan No. of units 490 490 (million t-CO2)

Power consumption (W) 460

Access performance [klOPS] 450 450

Conventional Tiered Conventional Tiered Conventional Tiered system system system system system system

2011 2012 2013 2014 2015 (FY)

Toshiba Group Environmental Report 2013 28 chapter2 chapter2 Expansion of Mitigation of Climate Change by Energy Technologies ECPs Conventional Energy

In order to provide a stable energy supply and mitigate climate change, Toshiba Group is developing various technologies Vision and Strategies to reduce the amount of CO2 emitted during thermal power generation as well as making continued efforts to ensure the safety of nuclear power generation. Combined cycle thermal power generation system Striving to the utmost to stabilize the operation of the Fukushima Daiichi Nuclear Power Station and with the world’s highest level of efficiency (≥ 62%) to facilitate decommissioning of the reactors Combined cycle thermal power generation is a power gen- Working in cooperation with the government and Tokyo eration method that combines gas turbine and steam tur- Electric Power Company, Toshiba Group is striving to the ut- bine. By using exhaust gas energy, combined cycle thermal most to stabilize the operation of the Fukushima Daiichi Nu- power generation system improves efficiency and reduces clear Power Station, which was seriously damaged by the

CO2 emissions per unit of electric energy compared with March 11, 2011 earthquake, as well as to facilitate the decom- Expansion of ECPs coal-fired conventional thermal power generation. Having missioning of the nuclear reactors. In addition to SARRY™, a developed a power generation system with the world’s treatment system for retained water that continues to oper- highest level of efficiency (≥ 62%) (lower heating value ate stably, we have developed and installed a multi-radioac- basis), Toshiba is now preparing to build a system for tive nuclides removal system (MRRS™) in order to purify the Nishi-Nagoya thermal retained water. As part of efforts to decommission the nu- power station that was clear reactors, we have developed a remote-controlled ordered by the Chubu quadruped robot to survey the inside of the reactor build-

Electric Power Company. ings. At the same time, with a view to advancing decontam- Manufacturing High-e ciency We will continue to fur- ination, we started using Gammasight™, a gamma camera ther improve efficiency that visualizes the amount of radi- and contribute to reduc- ation, as well as proposed the use

ing CO2 emissions. Overview: Combined cycle thermal power plant of a cesium removal system for treating incineration ash. Carbon capture technology: Progress toward commercialization Toshiba is making progress toward commercializing tech-

nology for capturing CO2 from exhaust gas emitted from Compliance and Management thermal power plants. We have conducted verification tests at a pilot plant for a more than 7,300 hours. Based on the Installation of a multi-radioactive nuclides removal Quadruped robot know-how acquired through these tests, we are proposing system (from Tokyo Electric Power Company’s homepage) application of the system to potential customers. We are also participating in Plant Biomass Initiatives for improving the safety of nuclear Energy Utilization Project of power generation Saga City’s Incineration Plant, which aims to capture CO2 from The global primary energy demand is predicted to increase exhaust gas of the incineration to about 1.4 times the current level by 2035.*1 At present, we plants to be used for growing depend on fossil fuels for about 80% of our energy supplies. Pilot plant agricultural crops and algae. Even in the aftermath of the earthquake, there will contin-

ue to be demand for nuclear power generation worldwide Reputation Development of a new thermal power generation as a means of ensuring that power supply meets growing needs for electricity without emitting CO2. In China, West- system that emits no CO2 into the atmosphere inghouse Electric Company concluded a contract for build- Toshiba is working to develop the world’s first high-efficiency ing four advanced pressurized water reactors (AP1000™), power generation system that operates turbines using CO2 and is currently building these reactors. In the United States, generated by high-temperature, high-pressure oxygen burn- Westinghouse Electric Company also received a contract for

ing of fuel. CO2 circulates within the system and is removed to building six AP1000™ reactors, four of which are currently Advancing Stage to the Next be stored or used for EOR* Air being constructed. Air separation O2 CH4 in addition to being used unit Along with promoting nuclear power generation, coun- Combuster for power generation. tries around the world are also reviewing their safety stan- CO2 Therefore, CO2 generated CO2 H2O Turbine generator dards based on the lessons learned from the accident at the Recuperative from fossil fuel is not re- heat Fukushima Daiichi Nuclear Power Station, including making exchanger Moisture leased into the atmo- Cooler separator safety assessments and taking measures for severe acci-

sphere. We are currently CO2 H2O CO2 dents caused by external factors. Toshiba is cooperating in

working to commercialize High-pressure CO2 establishing international safety standards as well as review- Pump this system. (storage, EOR) ing facility standards. We will reflect these standards in our

* EOR: Enhanced Oil Recovery new plant designs as well as renovations of existing plants Method for injecting high-pressure CO2 to increase the yield of oil in old oil fields and make constant efforts to further improve safety. *1 Source: World Energy Outlook 2012

29 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs Renewable Energy

Toshiba Group is working to develop various power generation technologies that use renewable energy, including photovoltaic, hydroelectric, geothermal and wind power, and to promote the use of such technologies. Vision and Strategies

● Geothermal power generation Power generator Growing into a company that plays a leading Toshiba delivers facilities role in the use of renewable energy equivalent to 23% of the Gear Turbine In order to mitigate climate change and effectively use limit- world’s total geothermal ed fossil fuel resources, Toshiba Group is working to develop power generation capacity. various power generation technologies that use renewable Based on the temperature Support energy, including photovoltaic, hydroelectric, geothermal properties of geothermal sources, we provide optimal Compact geothermal power generation system and wind power, and to promote the use of such technolo- Expansion of ECPs gies. geothermal power generation systems, including flush sys- ● Photovoltaic power generation tems, binary systems and flush-binary systems that use the two systems in combination. We also promote the use of Toshiba Group contributes to reducing CO2 emissions by providing photovoltaic power generation systems that Geoportable™, a newly developed 2-MW compact geother- achieve high levels of efficiency and long-term stability to mal power generation system. Geoportable™ has a small a wide range of facilities, including power plants, factories footprint and contributes to effective use of geothermal and homes. energy in locations with only one or two geothermal wells.

By using its comprehensive engineering skills acquired ● Hydroelectric system Manufacturing High-e ciency through the development of large-scale plants, Toshiba Toshiba has delivered about 2,000 Group offers total support for power companies’ develop- units of both turbines and gen- ment of photovoltaic power generation systems, from system erators, totally over 56 GW of hy- design and coordination through to the start of operation, in droelectric power generation fa- order to provide mega solar systems that achieve the highest cilities, to more than 40 countries levels of efficiency and long-term stability. We also make use around the world. We have the ΣFlow™, a system designed to generate of our extensive achievements and experience acquired by world’s best-in-class technologies power simply by installing it in a waterway developing mega solar systems for power companies to de- and achievements for pumped storage systems, in which velop systems for factories and take an active part in industri- water is pumped up using surplus power during nighttime

al mega solar programs, such as the Tahara Solar-Wind Joint and power is generated during daytime to offset power-de- Compliance and Management Project, in order to contribute to reducing CO2 emissions. mand peaks, as well as for adjustable speed pumped stor- In the area of residential photovoltaic power generation age systems that is effective in power system stabilization. systems, we began selling a 250-W solar battery module We also take an active part in developing small hydroelectric with the world’s highest conversion efficiency, 20.1%, in De- systems technologies to make effective use of hydroelectric cember 2012. The conversion efficiency of this module has energy. In addition to the Hydro-eKIDS™ series lineup for mi- already exceeded the 2020 goal (20%) for service modules cro-hydroelectric systems, we have also developed ΣFlow™, set by NEDO in the photovolta- a 1-kW hydroelectric system. ic power generation roadmap. ● Wind power generation Thanks to its high efficiency, In addition to providing total solution services from wind Toshiba’s system that uses this turbine development planning, construction and testing globally leading module gen- through to facility maintenance, Toshiba also actively pro- erates a large amount of power ■ motes wind power generation by proposing solutions for

Delivery of power generation systems (hydroelectric, geothermal and mega solar systems) Reputation per area, thereby further con- managing wind farms comprised of multiple wind turbine tributing to reducing CO2 emis- and for stabilizing the amount of power generated by com- sions. 250-W solar battery module bining wind power with storage batteries.

● Delivery of power generation systems (hydroelectric, geothermal and mega solar systems) Hydroelectric system Geothermal system

Mega solar system Advancing Stage to the Next

In Japan Hydroelectric systems (Turbines: 1,757; Power generators: 1,142) Geothermal systems: 6 Mega solar systems: 8

Toshiba Group Environmental Report 2013 30 chapter2 chapter2 Expansion of Mitigation of Climate Change by Energy Technologies ECPs Power Distribution

Toshiba Group is working to develop various technologies for smart grids, which are next-generation power dis- Vision and Strategies tribution networks designed to optimize the balance between energy supply and demand, including those for use of renewable energy. Next-generation energy supply-demand control er utilities. It is able to collect detailed data on power con- system developed by Toshiba, which plays a lead- sumption in buildings and houses and transmits such data ing role in verification tests to power utilities via the network. Users can also obtain in- Smart grid (next-generation power distribution network) formation on their power consumption charges in real time. technologies are attracting attention as technologies for us- Smart meters are capable of two-way communication. When ing renewable energy which are likely to be used more receiving an order from the grid monitoring system to re- widely in the future. The amount of power generated by duce power demand (demand response program), the smart meter manages the power consumption of the connected

power generation methods relying on renewable energy Expansion of ECPs sources such as sunlight and wind varies with the weather. appliances for which consumption is to be reduced. Toshi- Therefore, when renewable energy is introduced in large ba has concluded an agreement with Tokyo Electric Power amounts, the frequency and voltage of power distribution Company for an order of a communication system for smart systems will be affected and such fluctuations must be ade- meters and is using Landis+Gyr AG’s international standard quately controlled. Toshiba is working to commercialize communication technologies, which have a proven track re- community-wide energy control systems by combining out- cord. Toshiba has also acquired the U.S.-based Consert Inc., a put control functions that use storage batteries with func- company with demand response-related technologies, with tions for forecasting energy supply and demand. For exam- a view to accelerating the speed of construction and over- ple, at a major shopping center in Indiana, the United States, seas development of infrastructure for smart grid systems, Manufacturing High-e ciency we started an operation designed to stabilize power distri- including DR solutions. ● bution system by storing electricity generated by photovol- Smart battery, a stationary storage battery system taic power generation in stationary storage batteries and by Smart batteries are part of the stationary storage battery TM placing priority on discharge from storage batteries when system proposed by Toshiba. By using Toshiba’s SCiB re- recharging electric vehicles. Through the introduction of chargeable lithium ion battery, Toshiba provides a scalable smart grid systems, we will ensure adequate control of pho- battery system that covers a wide range of areas, from res- tovoltaic power generation systems and storage battery idences and factories through to power systems. We pro- systems in order to realize stable power system operation. vide solutions for controlling groups of smart batteries in coordination with power

Contributing to the world with a wide range systems, thereby contrib- Compliance and Management uting to the realization of of solutions a low-carbon society and

Based on the power distribution technologies that it has de- climate change mitigation. Large-scale stationary storage battery system veloped in the past, Toshiba Group provides various smart grid-related solutions. Contributing to environmental protection ● μEMS*: Grid monitoring/control device with a wide range of products The Micro Energy Management System (μEMS) is one of the core technologies that serves as the brain of a smart grid by In the area of power distribution systems and power receiv- monitoring and controlling the local supply and demand ing and transforming facilities for users, Toshiba also contributes to climate change mitigation through environmen- of electricity. It improves overall energy efficiency by con- tally conscious products. trolling electricity supply and demand, including absorbing ● Top-runner transformer variations in power consumption within a grid and minimiz-

Toshiba’s products have various features, including not only Reputation ing the effects of these variations on the electricity network. those for reducing energy consumption to mitigate climate It becomes particularly important to accurately forecast and change but also high reliability and compactness as well control electricity supply and demand with the introduc- as safety, disaster resistance and quiet operation. Used by tion of photovoltaic power generation and new large-scale many users, Toshiba’s products are contributing to reducing transportation systems that feature electric vehicles which energy consumption. may change the demand side considerably. In addition to ● Canola oil-immersed transformer the verification test project con- This transformer uses canola oil as an insulating oil and re- ducted by the New Energy and Battery duces CO2 emissions by the carbon neutral effect. Advancing Stage to the Next Industrial Technology Devel- ● Solid insulated switchgear opment Organization (NEDO) Renewable Energy Generator A special high-pressure switchgear that does not use SF6 gas, in cooperation with the state which is one of the greenhouse gases; this product is also government of New Mexico, the designed to be compact and to ensure safety by insulating United States, Toshiba has also received contracts for other the major circuit with epoxy resin. verification test projects and commercial projects in order to carry out optimum energy control initiatives in countries around the world. * μEMS (Micro Energy Management System) ● Smart meter A smart meter is a high-performance system that collects data on power consumption and transmits the data to pow- Top-runner transformer Canola oil-immersed transformer Solid insulated switchgear

31 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs Efficient Use of Resources Toshiba Group promotes 3R (reduce, reuse and recycle) initiatives for products to reduce resource consumption

and increase incoming and outgoing recycling. Vision and Strategies

Toshiba Group’s 3R* initiatives for products Increase in the percentage of resource savings In order to create a sound material-cycle society, there is a ● Results of FY2012 need to reduce the amount of resources extracted and dis- Under the Fifth Environmental Action Plan, we aim to further charged as waste throughout the product life cycle. Toshiba increase the amount of resources reduced to 1.5 times the Group is promoting 3R initiatives for products aimed at re- FY2010 level. In FY2012, the total amount of resources used ducing waste, increasing incoming recycling and improving in Toshiba Group’s major products, estimated by multiplying outgoing recycling. We are also taking measures to promote the amount used for products and packaging materials by the design for 3Rs of product and recycling systems and are im- number of shipments, was approximately 600,000 tons. Based plementing activities to reduce the environmental impact of on comparisons with the previous product models and adjust- Expansion of ECPs our products throughout their life cycles. ing for the expected number of years of use, we also estimated * Reduce, reuse and recycle to what extent resource consumption has been reduced for different products. Our comparisons show that we have re- ● Waste reduction duced the use of resources by 280,000 tons, or by 29% com- We achieve waste reduction through various means, includ- pared to previous product models. In addition to reductions ing reducing the amount of resources used to manufacture in the size and weight of LCD TVs and other digital devices, this products (reducing weight and size) and extending product result is also due to reductions in industrial product resource

lives (including upgrades and maintenance). Manufacturing High-e ciency consumption, including reductions in the weight of elevators ● Incoming recycling as well as increases in the capacities of magnetic disks (due to Incoming recycling refers to the application of recycled ma- reductions in the number of units produced). terials in products. We will work to improve our incoming ● Future initiatives recycling rate by increasing our use of recycled materials, We will continue to promote resource-saving designs for all prod- plant-derived materials and reusable parts. ucts with the aim of further reducing resource consumption. ● Outgoing recycling Outgoing recycling refers to the collection and recycling of end-of-life products. By promoting designs for reusing and ■ Amount of resources used by Toshiba Group and reductions in recycling materials, we improve outgoing recycling while resource consumption (FY2012)

simultaneously improving the system design for recycling Amount used Reduced amount* (1,000 tons) Compliance and Management end-of-life products further. Digital products 174.8 150.6 Home appliances 133.7 6.2 Materials Mineral resources Reduce Fossil fuels (Resource Elevators, escalators 99.9 14.9 conservation) Manufacturing Plant-derived Electricity and social 50.6 11.8 materials Reuse of parts infrastructure Recycled materials Medical equipment 49.2 7.3 Incoming recycling Packaging materials Distribution Air conditioners 39.4 5.8 Other Reuse products Recycling 3R packaging Semiconductors 33.4 66.1

MFP, POS and other office equipment 8.7 Reduce 18.4 Outgoing recycling (Extension Lights and lighting of product 3.7

equipment Reputation lives) Use 3.2 Waste Other 0.4 Collection 1.8 * Calculated by comparison with the previous product models adjusting for the expected number of years of use

Example 2-2 Resource-saving design for LCD TVs

Toshiba Corp. Digital Products & Services Company Conventional model FIT structure (40J7) Advancing Stage to the Next Thanks to Toshiba’s unique lightweight design,

LCD module TV back cover (2) Integration of the the 40J7 model for the Japanese market achieved LCD panel back cover back cover the industry’s highest level of resource-saving Optical sheets, etc. performance. In addition to enhancing the strength of the front bezel material, we succeeded in reducing the width of the frame by creating the industry’s first integrated back cover design. This model, which features reduced body weight and (3) Shrinking the size of the Circuit boards, etc. back cover smaller packaging, thereby achieving the highest (1) Integration of the level of resource-saving performance*, was certi- LCD module front frame parts Front frame front frame fied as an Excellent ECP for FY2012. * Compared to products in the same category at the time of product release

Toshiba Group Environmental Report 2013 32 chapter2 chapter2 Expansion of ECPs Efficient Use of Resources Initiatives regarding rare earths and rare

Increase in the use of recycled plastics metals Vision and Strategies ● Toshiba Group is promoting initiatives to recycle plastic Results of FY2012 waste generated by end-of-life products. Toshiba Group is working to reduce risks, such as increases ● Results of FY2012 in the prices of rare earths and rare metals and restrictions In addition to a significant increase in the use of recycled on the export of such materials. Among the rare earths used plastics for washing machines, refrigerators and vacuum in home appliances, neodymium (Nd) and dysprosium (Dy), cleaners, recycled plastics were also used for office ma- which are used as materials for permanent magnets, must chines (elevators, escalators and systems installed in cars). be given high priority in consideration of the fact that they As a result, use of recycled plastics increased to 2,300 tons in are used in large quantities. We adopted the grain boundary FY2012. The percentage of recycled plastics*1 used in Toshi- diffusion method for rare earth magnets used in air condi- ba Group products was 4.7%, greatly exceeding the target tioner compressors ahead of other companies and reduced Expansion of ECPs of 2.6%. We are also using plant-derived plastics to manufac- the use of Dy by approximately 50%. In addition to using fer- ture some plastic parts for LCD TVs and POS systems. rite magnets that contain no rare metals as alternatives to ● Future initiatives neodymium magnets in washing machine motors, we have In order to further increase the percentage of recycled plas- also developed samarium-cobalt magnets that contain no tics used in our products, we will secure a supply of waste dysprosium. We will continue to make efforts to reduce and plastics as well as develop new uses for recycled plastics in eliminate the use of dysprosium.

all product groups. Manufacturing High-e ciency

*1 [Amount of recyclable plastics] / [Amount of plastics used for products] × 100 ■ Example of product parts where an alternative material is used ■ Amounts and percentages of recycled plastics used Inside the rotor Magnets in- 4.70 side the rotor Percentage of recycled plastics used (%) Plan Result 3.00 2.60 2.40 1.67 1.91 21 Amount of plant-derived Compliance and Management 2,279 plastics used 25 27 Amount of post-consumer 1 1,324 recycled plastics used 779 908 (t)

2009 2010 2011 2012 2015 (FY) Post-consumer recycled materials vary in quantity available and quality depending on Air conditioner compressor GDD motor for washing machines how they are obtained. At times, we may need to use virgin materials due to insufficient supply or quality problems.

Example 2-3 Use of recycled plastics in refrigerators

Toshiba Home Appliances Corporation

The percentage of recycled plastics used in Toshiba’s VEGETA/GR-F56FXV refrigerator has significantly increased compared to the equiva- Reputation lent model for the previous year (GR-E55FX). The main reason for this increase is that recycled plastics were used for the parts embedded in polyurethane and the parts inside the machine chamber that do no affect product appearance. In addition to design improvements, improvements in recycling processes, including an increase in the supply, development of new recycled materials, and transport to overseas production sites, have made it possible to use such recycled products. GR-F56FXV (FY2012 model) Toshiba Refrigerator/Freezer (VEGETA) Initiatives for product design Expansion of the Assessment of the usability of recycled plastics for dif- use of parts made 1 ferent parts, selection of parts made of recycled plas- Advancing Stage to the Next tics, and expansion of their use of recycled plastics

Initiatives at recycling plants Manual dismantling of products to retrieve parts made 2 of a single material and improvement in the selection of high-purity plastics from mixed broken-down products Shade fixture F top panel Collaboration with plastic recyclers Securing of a Adjustment of physical properties (thermal resistance, 3 strength, color, etc.) to develop and manufacture recy- supply of recycled materials suited for different uses cled plastics

Transport to overseas production sites Establishment of overseas recycled plastic supply 4 routes Evaporation pipe fixture F duct

33 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs

Initiatives regarding the assessment of water Estimation of the WF of a paper

footprints Example 2-4 Vision and Strategies reuse system The water footprint (WF) of a product is an assessment of its effects on water resources throughout its life cycle. Toshi- Toshiba TEC Corp. ba has started to estimate WFs for its products, an industry This paper reuse system, which first, in order to assess the effects of its business on water removes colors, sorts paper, resources. and creates electronic data all ● Results of FY2012 at the same time, was certified In last year’s report, we presented the WFs we estimated for as an Excellent ECP in FY2012. our refrigerators and washing machines with dryers. In addi- By enabling reuse of paper, tion, we assessed these products’ contributions to reducing the system reduces water con-

water consumption in homes. We also estimated water consumption by 79% throughout Expansion of ECPs Paper reuse system its life cycle. sumption of paper reuse systems. We quantitatively showed Water that reusing paper reduces not only CO2 emissions but also consumption (1,000 m3) 2.5 water consumption. 79% reduction ● Contribution to the establishment of international standards 2.0 Standards for principles and requirements regarding WFs 1.5 Paper are being established in ISO/TC207 (environmental man- Transport 1.0 Writing agement)/SC5 (life cycle assessment). Toshiba Group partic- implements Body Power Manufacturing High-e ciency ipated in a working group meeting held in June 2013 in the 0.5 consumption Recycle Republic of Botswana as an international expert member, Consumables (Unit, consumables) 0 presenting its opinion as a company in order to help estab- Existing MFP system Paper reuse system

lish more practical procedures. ● Future initiatives An MFP system is used for five years to print 540,000 A4-size sheets of paper. Each sheet of paper is used five times. 40 users use 0.5 dedicated writing implements We will continue to improve our method for assessing envi- per man-month. See the reference material* for detailed information, including per-unit production ronmental effects and to expand the scope of assessment. databases used for the assessment. At the same time, we will also take an active part in establish- * Yokoyama et al. (2013), 8th Conference of the Institute of Life Cycle Assessment, Japan, A1-07 ing international standards. Compliance and Management

■ Examples of reduction in water consumption in homes 3R initiatives for packaging material

Annual water consumption We will streamline the use of packaging as well as product in homes per household*1 materials to reduce environmental impacts throughout Washing machine with dryer 66 m3 reduction Washing hand, their entire life cycles. per year*2 etc. 9% ● Results of FY2012 Improvement in the drying and water-saving performance of the The amount of packaging materials used by Toshiba Group heating pump (direct reduction) Toilet Washing 28% in FY2012 was 70,000 tons. As the number of shipments in- clothes 16% creases, the amount of packaging materials used also tends 274 m3 to increase. Nevertheless, we will work to reduce the use of packaging materials in accordance with the characteristics Microwave oven Cooking Bath 23% Saves more water than 24% of each business area and product category through various Reputation washing grillers measures, such as reducing packaging volume, enlarging (indirect reduction) the size of returnable (reusable) cases and using materials with low environmental impact.

EcoCute ■ Amount of packaging materials used by Toshiba Group 13 m3 reduction per year*2 (Life cycle not as yet considered) (1,000 tons) 45 Silver ions make it possible to reuse Other Refrigerator residual water (reuse and recycling) 40 Plastics Advancing Stage to the Next Improvement in food preservation performance 35 Wood (indirect reduction) 30 EPS 2 m3 reduction per year*2 Cardboard 25 Metals Paper 20

15 *1 Calculated by Toshiba based on "FY2011 Japan’s Resources" Other *2 Compared with Toshiba FY2000 model 10 5

0 2010 2011 2012 2010 2011 2012 2010 2011 2012 2010 2011 2012 (FY) Digital products Electronic devices Social infrastructure Home appliances

Toshiba Group Environmental Report 2013 34 chapter2 chapter2 Expansion of ECPs Management of Chemicals in Products

In addition to ensuring proper management of chemicals contained in products, Toshiba Group also promotes communication of information on such chemicals in order to minimize risks to human health and the global envi- Vision and Strategies ronment. With a view to achieving the goal of minimizing risks involved Initiatives for the management of chemicals in the use of chemicals, which was proposed and adopted at contained in Toshiba Group products the World Summit on Sustainable Development (WSSD*2) and other conferences, Toshiba Group has been promoting Toshiba Group manufactures and sells a wide range of prod- initiatives to eliminate the use of specified chemicals, to re- ucts, from electronic parts (e.g., semiconductors and hard duce the amount of chemicals contained in products and to disks) to home appliances (e.g., refrigerators, washing ma- use substitute materials. As part of these initiatives, we have chines and air conditioners) to audio-visual products (e.g., selected chemicals whose use is restricted by typical laws in PCs and TVs) and social infrastructure products (e.g., medi- Expansion of ECPs Japan and elsewhere and chemicals that Toshiba Group is cal equipment, transformers and weather radars). Various managing on voluntary basis and created the Toshiba Group chemicals are used to manufacture these products. In recent Environment-related Substance List in order to manage the years, regulations on the management of chemicals have chemicals contained in products by grouping substances become increasingly strict in countries around the world. into two categories: rank A (prohibited substances) and rank For example, the EU revised the RoHS Directive*1 in January B (managed substances). (For details, see the table below.) 2013 and expanded the restriction of certain hazardous substances to all electric and electronic products. In addition to

the EU, countries such as Vietnam, China, Jordan and India ■ Toshiba Group Environment-related Substance List Manufacturing High-e ciency are preparing to implement similar directives. (For details, Category Definition see the figure below.) The similar movements are taking Substances whose presence is prohibited in place in countries around the world. Rank A procurement items (including packaging) in the Against this background, we are collaborating with the Lo- (Prohibited Toshiba Group. Substances whose use in products cal Environment Division to collect, aggregate and analyze Substances) (including packaging) is prohibited or restricted by domestic and foreign laws and regulations. the latest information on relevant regulations in order to implement appropriate measures for ensuring legal com- Substances whose environmental impact should Rank B be reduced, based on their actual usage, via re- pliance. Furthermore, Toshiba Group has its own standards (Managed duction of use and substitution, or recovery and for the management of chemicals; these standards are ap- Substances) detoxification in a closed system. plied worldwide to all its products so that customers can use Compliance and Management Toshiba products with a sense of security. Due to industry trends and other circumstances, details of the management of chemicals (substances managed, management levels, threshold values, etc.) may differ among Toshi- ba Group companies.

■ Examples of regulations on chemicals contained in products in different countries

January 2013: EU RoHS revision December 2013 (scheduled): China RoHS revision Obligatory CE marking; compilation Recycling marks obligatory for all products and preservation of technical Prohibition of the use of hazardous substances in documents some products (PCs, TVs, etc.)

October 2013 (scheduled): State of California, U.S.A. Safer Consumer Product Regulations Designation of chemicals of high concern and assessment of alternative products Reputation

May 2014 (scheduled): India RoHS Prohibition of the use of hazardous substances in some products (PCs, TVs, refrigerators, washing machines, etc.) Advancing Stage to the Next January 2014 (scheduled): Jordan RoHS Compilation and preservation of technical documents December 2013 (scheduled): Viet Nam RoHS similar to the EU revised RoHS Obligation to disclose Declaration of Conformity

*1 RoHS (Restriction of certain Hazardous Substances) directive: A directive which limits Example 1: Phthalate esters contained in PVC (DEHP, BBP, DBP, DIBP) are designated the use of specified hazardous substances in electrical and electronic devices as substances to be authorized or to be restricted (under examination) *2 WSSD: World Summit on Sustainable Development in the EU REACH regulation and the priority hazardous substances in the *3 Regulations on PVC and BFRs in major countries: revised RoHS directive. Many national governments regulate PVC when used as an additive to soften resins Example 2: Organic tins contained in PVC (DOP and DBP): the EU REACH regulations (generally known as a “plasticizer”). (substances to be controlled) Example 3: In addition to PBDEs and PBBs, which are forbidden as flame retardants in the RoHS directive, hazard assessments of various other BFRs are underway in countries around the world.

35 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs

Promoting the use of alternatives to PVC/BFRs Initiatives for communication of information on chemicals throughout the supply chain Vision and Strategies ● Results of FY2012 and future initiatives In the Fifth Environmental Action Plan, which started in REACH*4, the European regulations on chemicals that came FY2012, we set a goal of using substitute materials to replace into force in June 2007, mandates development of a system polyvinyl chloride (PVC) and brominated flame retardants for effectively disclosing and communicating information (BFRs) contained in products across a total of 80 product on chemicals contained in parts, materials, and products groups in FY2015. throughout the supply chain. Toshiba Group has actively ad- In FY2012, we studied the amounts of PVC and BFRs con- opted the JAMP*5/AIS*6 format, the industry’s standard sur- tained in Toshiba Group products to formulate a reduction vey format, to promote effective communication of informa- plan for the future. Unfortunately, assessing the reliability tion on chemicals contained in products throughout the of alternative parts took significant time, and as a result, we supply chain. Expansion of ECPs were able to use substitute materials for only 17 product To promote business activities aimed at reducing the en- groups, falling short of the goal (20 product groups). How- vironmental impacts of hazardous chemicals and the risks ever, we have successfully reduced the use of PVC and BFR in involved in using them, it is essential to obtain the cooper- some of our newly created products, such as the OCR scan- ation of suppliers, our business partners, for those activities ner. (See the examples below.) for which the supply chain as a whole must be targeted. We request the understanding and cooperation of our suppli- ■ Product groups covered by the PVC/BFR substitution ers in our green procurement initiatives aimed at creating

initiative a sustainable society. We also request that they make envi- Manufacturing High-e ciency A total of ronmental assessments and conduct research on and evalu- 80 product groups ations of the chemicals contained in the materials and parts Plan they supply and report the results of independent assessments on their level of green procurement (according to Toshiba’s standards) in accordance with ISO 14001. Result 30 *4 REACH (Registration, Evaluation, Authorization and Restriction of Chemicals): Regula- product tions on registration, evaluation, authorization and restrictions related to chemicals 20 17 groups 14 product product *5 JAMP: Joint Article Management Promotion-consortium product groups groups *6 AIS (Article Information Sheet): JAMP-recommended information sheet used to com- groups municate information on chemicals contained in products Compliance and Management

2011 2012 2013 2014 2015 (FY)

■ Suppliers’ levels of green procurement for FY2012 ■ Use of PVC at Toshiba Group companies (Results for (%) FY2012) Rank S Rank A Rank B Lower than Rank B 85.4 11.8 1.8 1.0 Hoses 1% Other Note: Rank S (Priority), Rank A (Excellent), Rank B and Lower than Rank B (Improvement requested) Labels 5% 1% Wires (lead wires, power cords) 30% Example 2-5 OCR Scanner S3500

Electrolytic Toshiba Solutions Corporation Reputation Electronic condensers Desktop OCR scanner with the highest speed*1 in Japan (200 parts 7% (harnesses, etc.) B&W, A4-size horizontal sheets per minute). This product com- 49% Tubes 7% plies with the International Energy Star Program standards and has the industry’s lowest level of standby power consumption. It also contains reduced amounts of chemicals (e.g., mercury, ■ Use of BFRs among Toshiba Group companies (Results PVC and BFRs) compared to previous models. for FY2012) *1 Internal data as of July 2013 Advancing Stage to the Next

Wires ● (lead wires, Mercury-free power cords) Light Emitting Diodes (LEDs) 1% Circuit boards are used as light sources to Other 7% 2% eliminate use of mercury and to Mounted extend product lives. circuit boards 15% ● PVC/BFR-free Casings Other and covers electronic The design reduces the discharge of hazardous substances 58% parts 17% during incineration by eliminating use of PVC (polyvinyl chloride) for the AC cable and use of BFRs (brominated flame retardants) for the printed circuit board.

Toshiba Group Environmental Report 2013 36 chapter2 chapter2 Expansion of ECPs Product Eco-efficiency

Eco-efficiency Vision and Strategies

The concept of eco-efficiency was developed to realize a sustainable society by providing products and services designed to improve the quality of life while reducing environmental impact. The Factor indicates the degree of improvement in eco-efficiency by comparing to a benchmark period. Factor values of 4 and 10 are widely known as the targets required to realize a sustainable society. The greater its Factor, the more a product contributes to creating value and reducing environmental impact through technological progress and innovation.

Value of product/service Degree of improvement in Eco-efficiency = Factor = eco-efficiency compared to the Expansion of ECPs Environmental impact benchmark period

Toshiba Group originally developed a method for calculating eco-efficiency to introduce an indicator that enables overall assessment of products’ environmental friendliness. Comprehensive activities for creating ECPs that are aimed at increasing the Factor are part of the Factor T initiative, so named after Toshiba’s initial. Factor T has the following characteristics: ① it is expressed as a multiplication of a value factor and an environmental impact reduction factor; ② it quantifies the value of a product or service Manufacturing High-e ciency (numerator) using QFD; ③ it assesses environmental impact (denominator) using LIME (*).

For detailed information about the calculation method and its ［ファクターT］10年間のあゆみ環境ビジョン 2050 第9回LCA日本フォーラム表彰みんな奨励賞（2005年以降、社外表彰を連続受賞中）で進もう！実現へ［ファクターＴ］のすゝめ発行／［ファクターＴ］のすべて発行予定（於第22回東芝グループ環境展）みんなで進もう！東芝ecoスタイル application to Toshiba products, see the explanatory materials 第8回LCA日本フォーラム表彰環境効率部門・奨励賞／LCA部門・奨励賞 2012 東芝ecoスタイル環境効率アワード2010新しい豊かさの指標特別賞第7回ＬＣＡ日本フォーラム表彰会長賞 2011 新しい豊かさの指標

編集後記［ファクターＴ］と歩む発行第5次環境アクション (“[Factor T] Reader” and “Encouragement of [Factor T].” 環境効率アワード2009 会長賞 2010 プラン策定［ファクターＴ］の冊子シリーズ第７弾は、［ファクターＴ］［フ第6回ＬＣＡ日本フォーラム表彰ァクター会長賞］読本ァの１０周年を記念した特別編です。 T ［フクターT］すゝめ環境効率の国際規格（ISO14045）発行 2009 実さん一家のお話は、まだまだ続きます。ご意見・ご質［ファクターＴ］とともに発行（評価事例として［ファクターT］掲載）問をお寄せください。皆様のご意見を反映させて、本冊環境効率アワード2008 会長賞 http://www.toshiba.co.jp/env/jp/factor_t/index_j.htm (in Japanese子をさらに改善していきたいと考えています。 only)どうぞよ 2008 ［ファクターＴ］の現在発行ろしくお願いします。環境効率アワード2007 局長賞株式会社東芝環境推進部 2007

第4回ＬＣＡ日本フォーラム表彰会長賞 Compliance and Management 環境ビジョン2050策定、「ファクター１０」を掲げるファクター標準化が電機8社に拡大環境効率アワード2006 奨励賞 2006 http://www.toshiba.co.jp/env/jp/report/pdf/factor_t2012_2.pdf (in Japanese only) 電機5社によるファクター標準化が実現 IT（情報技術）の環境効率ガイドライン策定・公表［ファクターＴ］の広がり（実践編）発行 2005 環境効率アワード2005 奨励賞用紙での配慮［ファクターＴ］のお話 2004 製紙原料として国産材を活用第4次環境アクションプラン策定、ファクターを環境経営指標に京都議定書で日本は「温室効果ガスの排出量（基本編）発行 6％削減」を掲げていますが、その約3分の2にあたる3.9％を、森林によるCO2吸収が担っています。国産材を積極的に使うと、元気な森林 2003 Ａ-（2）-060002 が育ち、CO2をたっぷり吸収できます。この冊環境効率指標［ファクターＴ］導入 FSC認証用紙の使用子は森林に感謝（サンキュー）しながら国産材「適切に管理された森林からの木材（認証材）」を原料とを製紙原料として活用し、国内の森林によるした紙として、FSC（ForestStewardshipCouncil、森 CO2吸収の拡大に貢献いたします。林管理協議会）から認証を受けた紙を使用しています。

間伐に寄与する紙の使用東芝グループは、森の町内会システムを活用し、青森県・三沢市との間伐事業を支援して、豊かな森の創造と間伐材の〒105-8001 東京都港区芝浦1-1-1 利用促進に取り組んでいます。〒105-8001 東京都港区芝浦1-1-1 お問い合わせ先お問い合わせ先印刷での配慮環境推進部環境推進部水無し印刷 Non-VOCインキの使用 TEL : 03-3457-2403 FAX : 03-5444-9206 TEL : 03-3457-2403 FAX : 03-5444-9206 印刷工程において刷版の版材がインキを揮発性有機化合物、VOC（Volatile E-mail : [email protected] E-mail : [email protected] はじくという特性を利用し、水を使用せずに Organic Compounds）を含まない、植 URL http://www.toshiba.co.jp/env/jp/index_j.htm 印刷する「水無し印刷」を採用しています。物油100%のインキを使用しています。 URL http://www.toshiba.co.jp/env/jp/index_j.htm These materials were awarded the Bronze Award in the 2013 Nikkei BtoB Advertising 東芝グループの取り組みについて東芝グループの取り組みについて 2013FEB（TBLS） 2012DEC（TBLS） Award’s product catalog (general) category.

■ Factor T

Environmental Factor Value impact 5.95 factor 2.05 reduction factor 2.90 Reputation ■ Value assessment using QFD ■ Environmental impact assessment using LIME

Environmental Environmental Consumer Product Importance Comparison of impact impact area demand performance specifications Climate Human health Iron CO2 change Water 165 L 56 L Other consumption Large Low power Plastics SOX and NOX Air pollution and water washing … …… Social assets capacity costs Drying 300 165

Acidification Advancing Stage to the Next time minutes minutes Power T-N and T-P Eutrophication Washing 129 30 consumption Biodiversity time minutes minutes …… Water consumption Iron ore Beautiful finish Washing 7 kg 9 kg Fast washing (cleansing capacity Amount of Primary and drying and sterilization) detergent Resource

… … … … Crude oil used depletion production … … … Benchmark Product product assessed * Only major relations are (2000) (2012) represented by lines.

* LIME: One of the leading environmental assessment methods in Japan, LIME (Life-cycle Impact assessment Method based on Endpoint modeling) was developed by the Research Centre for Life Cycle Assessment, National Institute of Advanced Industrial Science & Technology, an independent administrative institution.

37 Toshiba Group Environmental Report 2013 chapter2 chapter2 Expansion of ECPs

The Factor T initiative was started in 2003. Under this initiative, we have carried out various activities involving parties inside and outside Toshiba Group, including the announcement of Environmental Vision 2050, formulation of Environmental Action Plans, Vision and Strategies conferences with competitors aiming at standardization, and contribution to the establishment of ISO standards. Toshiba Group will continue to pursue the Factor T initiative in order to work toward realizing a sustainable society by incorporating new knowledge.

Toward realizing Ten years of history for [Factor T] Environmental Vision Publication of Encouragement of Factor T and Factor T Reader 2050 Awarded an Incentive Award at the 9th LCA Society of Japan (recipient every year since 2005)

Awarded two Incentive Awards at the 8th LCA Society of Japan in the Eco-e ciency and LCA categories 2012 Awarded the Eco-e ciency Awards 2010 Special Award and the 7th LCA Society of Japan Chairman’s Award Expansion of ECPs 2011 Publication of The History of Factor T Eco-e ciency Awards 2009 Chairman’s Award Sixth LCA Society of Japan Chairman’s Award 2010 Formulation of the Fifth Environmental Action Plan Publication of Walking with Factor T 2009 Eco-e ciency Awards 2008 Chairman’s Award Publication of International Standards for Eco-e ciency (ISO14045) Publication of Factor T Today 2008 (Factor T cited as an example of assessment) Eco-e ciency Awards 2007 Director-general’s Award Formulation of Environmental Vision 2050 and "Factor 10", Fourth LCA Society of Japan Chairman’s Award 2007 Manufacturing High-e ciency standardization of the Factor spreads to eight Eco-e ciency Awards 2006 Incentive Award electrical appliance manufacturers 2006 Standardization of the Factor by ve electrical appliance Publication of Spread of the Use of Factor T (Applications) manufacturers Eco-e ciency Awards 2005 Incentive Award 2005 Formulation and release of eco-e ciency guidelines for IT

Publication of The Story 2004 Formulation of the Fourth Environmental Action Plan, use of the Factor as an of Factor T (Basics) environmental management indicator

2003 Introduction of Factor T, an eco-e ciency indicator Compliance and Management

Doubly awarded at the Life Cycle Assessment Society of Japan for the development and promotion of advanced Eco-efficiency assessment methods

In addition to developing and promoting eco-efficiency assessments has focused on the importance appropriate for different business areas, Toshiba Group is also work- of water resources, which have ing to address new international trends ahead of other companies. recently been attracting atten- ● Initiative in the area of medical equipment tion as a critical environmental Toshiba Medical Systems Corporation has been working to create issue, and has been considering eco-designs in the area of medical equipment. In the design of incorporating water resources medical equipment, the highest priority is placed on clinical perfor- into conventional LCA. We are mance. This priority must be balanced against other requirements, actively promoting the use of such as those for energy-saving, resource-saving and space-saving information on water resources within group companies and also pub-

performance. When installing equipment, increased product sizes licizing the importance of such information through various activities, Reputation often necessitate that building walls be knocked down or hallway including compiling data on water consumption per unit production doors be removed. For this reason, it is also important to reduce the using input-output tables, participating in the activities of external waste generated during delivery and installation of such equipment. working groups, and publishing the water footprints (WFs) of products Toshiba Medical Systems Corporation has created a system in which and services at Eco-products Exhibitions and in our environmental re- competitors’ products are always chosen as benchmarks and goals ports. In our home appliance case studies, we estimated reductions in are set for environmental performance during the product planning WF resulting from improvements in the water-saving performance of and development stages. The company also takes an active part in washing machines with dryers and the food preservation performance

disclosing information about improvements in products’ environmen- of refrigerators, thereby adding value to products. We also participate Advancing Stage to the Next tal performance as product features, thereby promoting communica- in external study meetings to review water consumption management tion with customers. At the 9th LCA Society of Japan held in FY2012, at production sites, thereby responding to international trends to Toshiba was awarded the develop in-house measures in a timely manner, including enhancing Incentive Award for its activi- water management at production sites in water-stressed areas. For ties promoting environmental these water footprint activities, Toshiba Group was awarded a second management in the area of Incentive Award. medical equipment through ● Looking back on the awards ceremony life cycle assessment. Toshiba Group has received awards from the LCA Society of Japan six ● Initiative in the water times in five consecutive years. We believe these results reflect our related area continued efforts to assess eco-efficiency using our Factor approach. From early on, the Environ- We will continue our group-wide efforts to develop and promote ment Management Division eco-efficiency assessment.

Toshiba Group Environmental Report 2013 38 chapter3 Chapter 3

High-efficiency Manufacturing Vision and Strategies We are pursuing world’s lowest level of environmental

impacts in manufacturing. Expansion of ECPs

INDEX Pursuing the world’s lowest level of environmental impacts Summary of activities in FY2012 Toshiba Group is promoting Greening of Process, an ini- Mitigation of Climate Change P41 tiative for high-efficiency manufacturing, which aims to Manufacturing High-e ciency minimize resource inputs in production processes in Japan Reduction in total GHG emissions and abroad, eliminate waste in manufacturing processes, by half compared to the 2.76 million t-CO2 FY1990 level and reduce to a minimum emissions into the atmosphere and waters, thus achieving the world’s lowest level of envi- 2 Reduction in CO emissions associated with product logistics ronmental impact. Specifically, this initiative consists of two (in Japan) by 10% compared efforts: “improvement of plant efficiency,” which refers to 0.052 million t-CO2 to the FY2010 level efforts to grasp energy consumption appropriately in order

CO2 emissions resulting from to ensure effective improvement of equipment operation employees’ business travel 0.057 million t-CO2 and introduce high-efficiency equipment, and “process in-

(by aircraft) Compliance and Management novation,” which aims to achieve sustainable manufacturing Use of renewable energy 29,645 MWh in collaboration with all units involved in manufacturing.

■ High-efficiency manufacturing strategy E cient Use of Resources P45 Pursuing the world’s lowest level of environmental Reduction in the total volume of 0.092 million tons waste generated by 40% compared impacts by minimizing input and output to the FY2000 level Future goals Reduction in the total volume of water received by 16% compared to the % Sustainable 87 manufacturing OUTPUT FY2010 level INPUT ・Motivation Management of Chemicals P47 ・Easy-to- Process understand innovation ・Visualization Reputation Reduction in the total volume of 1,393 tons of energy use chemicals emitted by 45% compared to the FY2000 level Present

Response to Environmental Risks P49 Energy Improvement Greenhouse in power Process (electricity and improvements gases, waste, Collection of volatile organic heat), materials efficiency chemical chemical compounds (VOCs) 613 kg and consumables, substances, and contained in groundwater chemicals and wastewater industrial water Past Advancing Stage to the Next

Recycling of End-of-Life Products P51 Improvement in plant efficiency × Process innovation

Amount of end-of-life products 0.091 million tons recycled Mitigation of Management climate change Efficient use of chemicals of resources ● Reducing energy ● Pre-use risk assessments for consumption and the volume hazardous substances of greenhouse gases used ● Reducing the total amount of ● Reducing the volume of ● Introduction of energy-saving waste generated chemicals used and processes and equipment ● Reuse of waste introducing alternatives ● Shift to low-carbon energy ● Collection and recycling of ● Appropriate management of and gases with low end-of-life products substances used greenhouse e ects ● Reducing the volume of water received

39 Toshiba Group Environmental Report 2013 chapter3 Chapter 3

Toshiba Group is promoting the Greening of Process initia- ● Results of FY2012 tive from three perspectives: mitigation of climate change, Sales decreased in FY2012 compared to the previous year. Vision and Strategies High-efficiency Manufacturing effective use of resources, and management of chemical However, due to reductions in GHG emissions through ener- substances. In terms of climate change, the CO2 emission co- gy conservation efforts and other factors, business process effcient for electricity in Japan has deteriorated considerably eco-efficiency improved compared to the previous year to due to the effects of the March 11, 2011 Great East Japan 1.39 times (in comparison with the FY2000 level), exceeding We are pursuing world’s lowest Earthquake, and indications are that this is greatly affecting the goal of 1.35 times. Toshiba Group, where electricity-derived CO2 emissions ac- ● Future initiatives count for a majority of total GHG emissions. Toshiba Group is The goal of the Fifth Environmental Action Plan is to in- level of environmental actively taking energy conservation measures on a compa- crease business process eco-efficiency to 1.5 times com- ny-wide scale. We will grasp energy consumption in real time pared to the FY2000 level in FY2015. To achieve this goal, (visualization), analyze data (easy-to-understand), and take Toshiba Group will work to reduce environmental impacts impacts in manufacturing. actions for improvement (motivation). Especially in FY2013, according to the nine specific targets (details on page 12). Expansion of ECPs the Group plans to reduce CO2 emissions by approximately 60,000 tons by concentrating efforts on semiconductor plants, which account for nearly half of the Group’s total Net sales GHG emissions. In terms of effective use of resources, we will Business process eco-e ciency Environmental impacts for all business processes continue to make maximum use of our ingenuity to reduce the total volume of waste generated and final waste disposal FY2012 result 1.39 times volumes as well as strive to use valuable water resources

1.53 Manufacturing High-e ciency effectively. As for management of chemicals, the Group will 1.39 Result 1.39 make efforts to reduce the amount of targeted substances 1.35 1.47 1.50 1.21 1.20 1.22 1.44 1.35 handled and discharged mainly through the introduction 1.28 of alternative substances and process improvements. In the 1.00 1.19 1.19 1.20 1.20 1.20 Plan future, we will endeavor to achieve the world’s lowest level FY2015 goal 1.50 times of environmental impacts by realizing high-efficiency manufacturing that enhances our business competitiveness. 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (FY)

Increasing business process eco-efficiency Business process eco-efficiency in the Degree of improvement in year assessed business process to 1.5 times the FY2000 level in FY2015 eco-efficiency Business process eco-efficiency in the Compliance and Management base year (FY2000) Toshiba Group, which comprehensively assesses the effects of environmental impacts in its business operations, views Business process Net sales Environmental impacts for all business process eco-efficiency as an important indicator eco-efficiency business processes of high-efficiency manufacturing and is working to reduce environmental impacts in manufacturing processes. Environmental impacts Conversion into Greenhouse gases, monetary value chemicals, waste Impacts LIME*

* LIME One of the leading environmental assessment methods in Japan, LIME (Life-cycle Impact assessment Method based on Endpoint modeling) was developed by the National Institute of Advanced Industrial Science and Technology, an independent administrative institution (details on page 37).

Environmental impacts resulting Reputation Environmental Recycling from business operations impacts Reduction of emissions

CO2 CO2 Atmosphere CO2 CO2 (Chemicals and greenhouse gases such as CO ) 2 CO2 CO2 Advancing Stage to the Next

Energy, Business resources Users operations Products

Resource recycling, Waste, reuse end-of-life products

Promotion Hydrosphere Final disposal of recycling (Chemicals) (Waste) Streamlining of procurement of energy and materials Reduction of emissions Reduction of emissions

Toshiba Group Environmental Report 2013 40 chapter3 chapter3 High-efficiency Manufacturing Mitigation of Climate Change

In order to contribute to the mitigation of climate change, Toshiba Group strives to curb CO2 emissions resulting Vision and Strategies from product logistics, to reduce greenhouse gas (GHG) emissions, and to analyze CO2 emissions throughout the entire supply chain. Reducing total GHG emissions Reducing energy-derived CO2 emissions Toshiba Group proactively installed systems to collect and/ ● Results of FY2012 or remove sulfur hexafluoride (SF6), which is used to insu- Under the Fifth Environmental Action Plan, in order to as- late heavy electric machinery, and perfluorocarbons (PFCs), sess CO2 emissions measures consisting mainly of those for which are used to produce semiconductors. As a result, in electricity conservation, the Group uses energy-derived CO2 FY2000, the Group nearly halved the total amount of GHG emissions per unit production by fixing the CO2emission emitted* compared to the FY1990 level, and in subsequent

coefficient to FY2000. In FY2012, as a result of measures Expansion of ECPs years, GHG emissions continued to decrease as the Group such as energy-saving investments, proactive electricity steadily took measures to improve its production processes. conservation, and reductions in power consumption by Meanwhile, energy-derived CO2 emissions resulting from production adjustments, Toshiba Group was able to reduce the use of electricity, which peaked in FY2007, when pro- energy-derived CO2 emissions per unit production to 90% duction reached its highest level, have been reduced since of the FY2010 level, thus reducing such emissions by 10%, FY2008 by taking energy conservation measures at all busi- which is six percentage points higher than the initial goal. ness and production sites, including ones overseas, restruc- Meanwhile, affected greatly by the deterioration of the CO2 turing production sites, and introducing renewable energy

emission coefficient for electricity due to the earthquake, Manufacturing High-e ciency proactively. total energy-derived CO2 emissions increased substantially *Six types of greenhouse gases targeted for reduction in the Kyoto Protocol: carbon diox- to 2.49 million tons (0.33 million-ton increase compared to ide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) the FY2010 level). Nevertheless, compared to the previous ● Results of FY2012 and future initiatives year, total emissions decreased by 0.4 million tons. In FY2012, Toshiba Group reduced GHG emissions other ● Future initiatives than energy-derived CO2 by 79% compared to the FY2000 In order to meet growing market demand, Toshiba Group level mainly by installing PFC removal equipment. Mean- plans to construct new plants, mainly those for manufac- while, electricity consumption decreased compared to turing semiconductors. Therefore, energy-derived CO2 FY2010 due to proactive electricity conservation measures, emissions are likely to increase in the near future. The Group

including capital investments, but energy-derived CO2 emis- will continue its efforts to reduce CO2 emissions per unit Compliance and Management sions increased as in 2011 because of a deteriorating CO2 production by 10% compared to the FY2010 level in FY2015 emission coefficient for electricity due to the effects of the by adopting a variety of energy conservation measures, in- Great East Japan Earthquake. Nevertheless, CO2 emissions cluding performing energy-saving diagnoses and investing decreased compared to the previous year. The CO2 emission in energy-saving facilities. coefficient for electricity is expected to deteriorate in the future, but Toshiba Group will continue to make steady ef- ■ Changes in energy-derived CO2 emissions per unit production forts to reduce total GHG emissions by investing proactively Per unit real production (compared to the FY2010 level) (%) Plan Result*2 100 96 in high-efficiency equipment. The Group’s goal is to reduce 94 90 total GHG emissions to 3.92 million tons or less (60% com- 94 pared to the FY1990 level) in FY2013 and 4.39 million tons 90 (million tons-CO2) 2.56 2.42 2.53 2.49 or less (67%) in FY2015. 2.23 2.16 Increase due to 1.96 0.42 the eects of ■ Changes in total GHG emissions 1.74 the earthquake (If calculated based Reputation (million t-CO2) on the FY2010 CO2 Energy- 6.58 Reduction to 67% or less compared to the FY1990 level emission coe cient derived for electricity) CO2 Result Plan emission 4.39 1990 2000 2007 2008 2009 2010 2011 2012 2013 2015 (FY) 3.23 3.35 3.92 GHG other 2.99 2.73 2.81 3.45 than 2.58 2.76 energy- * The CO2 emissions coefficient for electricity is used to calculate energy-derived CO2 derived emissions (in Japan, 3.50 t-CO2/10,000 kWh in FY2010, 4.76 t-CO2/10,000 kWh in CO2 FY2011, and 4.87 t-CO2/10,000 kWh in FY2012). Overseas electricity is based on the GHG Protocol. 1990 2000 2007 2008 2009 2010 2011 2012 2013 2015 (FY)

*2 The electricity coefficient is fixed to that of FY2010. Advancing Stage to the Next * The CO2 emissions coefficient for electricity is used to calculate energy-derived CO2 emissions (in Japan, 3.50 t-CO2/10,000 kWh in FY2010, 4.76 t-CO2/10,000 kWh in

■FY2011,温室効果ガス排出量の内訳（２０１２年度） and 4.87 t-CO2/10,000 kWh in FY2012). Overseas electricity is based on the ■ エネルギー起源co2排出量の内訳（2011年度） GHG Protocol. ■ Breakdown of energy-derived CO2 emissions (FY2012) ■ Breakdown of GHG emissions (FY2012) 439 Digital products Digital products 392 Other China 6% Asia 9% Other China 5% Asia 8% 5% 4% 3% 3% Europe Home Home 3% appliances appliances Europe 6% 4% 6% Emissions: Americas Emissions: Emissions: Emissions: 2.76 7% 2.76 Americas Social 2.49 8% 2.49 million 2 million 2 infrastructure t-CO t-CO million t-CO2 million t-CO2 27% Social Electronic Japan infrastructure Electronic Japan devices 75% 27% devices 73% 60% 59% By business segment By region By business segment By region 1990 2000 2007 2008 2009 2010 2011 2012 2013 2015

41 Toshiba Group Environmental Report 2013 chapter3 chapter3 High-efficiency Manufacturing

Reducing CO2 emissions associated with product logistics Reductions in CO2 emissions from employees’ business travel Vision and Strategies

● Results of FY2012 and future initiatives Toshiba Group is working to analyze CO2 emissions resulting In FY2012, Toshiba Group strove to reduce energy consump- from employees’ business travel. The table below indicates tion during product logistics by taking various measures, in- CO2 emissions from employees’ business travel by air from cluding improving load factors when transporting products, FY2010 to FY2012. applying modal shifts to a wider range of products, and In FY2012, CO2 emissions increased due to a larger number shortening the transport distance by restructuring distribu- of employees traveling on a business trip to ensure the safe- tion centers. As a result, it reduced CO2 emissions per unit ty of nuclear power stations and to launch new businesses. production by 10% compared to the FY2010 level, exceeding the initial target for FY2012 by 8%. In the future, Toshiba Group will continue its efforts to re- ■ CO2 emissions from employees’ business travel Expansion of ECPs duce CO2 emissions associated with product logistics with a (t-CO2) view to reducing CO2 emissions per unit production by 5% 12,076 Domestic 11,964 business compared to the FY2010 level in FY2015. 12,104 travel 45,076 Overseas 39,101 ■ 34,317 business Reduction in CO2 emissions associated with product travel logistics in Japan 2010 2011 2012 (FY) Per unit real production (compared to the FY2010 level) (%) Result * CO2 emissions per unit passenger transport × Distance of travel × Seat class coefficient (overseas 100 Plan business travel only) (from the Japanese Ministry of the Environment’s guidelines)

98 Manufacturing High-e ciency 97 95 100 Use of renewable energy 95 90 58,600 53,100 51,900 (tons-CO2) Toshiba Group is continuously striving to use renewable energy for a wider range of its operations. In FY2012, the Group used 29,645 MWh’s worth of renewable energy. This means that the Group reduced about 14,000 tons* of CO2 emissions. 2010 2011 2012 2013 2015 (FY) Toshiba Corp. has also used a green power system since Jan- uary 2005 and has since been purchasing 2,000 MWh of elec- ■ Breakdown of CO2 emissions associated with product tricity under a green power certificate annually. logistics in Japan in FY2012 2

* Calculated based on 4.76 t-CO /10,000 kWh Compliance and Management

Digital Electronic products devices 6% 2% Home Introduction of a solar power Emissions: appliances Example 3-2 51,900 56% generation system t-CO2 Social Toshiba America Information Systems, Inc. infrastructure 36% In order to mitigate climate change, Toshiba America Information Systems, Inc. has installed a solar power generation system in its plant By business segment parking lot. The company performed a simulation before constructing the power generation system and decided to use its own high-trans- ■ CO2 emissions associated with overseas and formation-efficiency inverter, which it found to be best suited for international logistics (approximate figures) the system. As a result, the company was able to construct a system with a standard generating capacity of 105 kW (using a total of 700 Toshiba Group collects data on overseas and international power generation panels) and an annual power generation output of

logistics for the group and calculates approximate CO2 emis- 155 MWh. As a result, the company is Reputation sions associated with such logistics. able to reduce annual CO2 emissions by approximately 88.9 tons. This system also significantly contributed to the renewable energy development ■ Total: 466,000 t-CO2 (FY2012) policy promoted by the State of Cali- (Breakdown) Logistics in overseas countries: 27,000 t-CO2 fornia. International logistics: 439,000 t-CO2

Example 3-1 Promotion of modal shifts using the Russian Trans-Siberian Railway (PC products) Advancing Stage to the Next

Toshiba Logistics Corp. CO2 Comparison of CO2 emissions by means of transport (assuming CO emissions from railroads = 1) After 2 In order to reduce lead times, Toshiba Logistics Corp. improvement 1 had been using aircraft to transport its products into 2 Moscow Vladivostok Russia; however, this lead to a large amount of CO2 PC Warehouse 5 Customer factory Ship Vostochny/ emissions during transport. Accordingly, the company Trans-Siberian Shanghai Vladivostok Railway switched to transport via the Trans-Siberian Railway 34 5 (modal shift) and also developed a new type of pack- Warehouse China Russia Truck Russia aging capable of withstanding long-distance railway 2 Reduction in CO2 transport. As a result, the company reduced CO emis- Airplane Germany Truck emissions during transport per PC: sions during transport by 23 kg per PC compared to Before 23 kg-CO2 the previous level. improvement

Toshiba Group Environmental Report 2013 42 chapter3 chapter3 High-efficiency Manufacturing Mitigation of Climate Change

Topics Making GHG emissions in the supply chain visible for all categories Vision and Strategies

Toshiba Group is working to calculate and analyze GHG*1 emissions throughout its entire supply chain. In FY2012, the Group calculated such emissions for all categories using the calculation methods based on the Ministry of the Environment’s guidelines*2 and compared the results to those for the previous year for each category. The Group reduced GHG emissions during product use (the life cycle stage having the largest amount of emissions) by about 28% compared to the previous year. Toshiba Group believes that it is important to work effectively to reduce GHG emissions throughout the product life cycle by quantitatively analyzing emissions per category as described above.

*1 CO2, CH4, N2O, HFCs, PFCs, and SF6

*2 Basic guidelines for calculating GHG emissions throughout the supply chain Expansion of ECPs

Upstream Toshiba Downstream Scope 3 Scope 1, 2 Scope 3 Purchased electricity, steam, and hot/cold energy Purchased products Capital Fuel- and Transport and and services goods energy-related delivery Direct GHG emissions via fuel Transport and Processing of Use of sold activities use at Toshiba and its delivery sold products products industrial processes High-e ciency Manufacturing High-e ciency

Waste generated Business Employee Leased in operation commuting assets travel Disposal of Leased assets sold products

7.96 million t-CO2 2.76 million t-CO2 58.01 million t-CO2 Category Change in Categories covered by calculations FY2011 Calculation FY2012 Calculation Considerations results (million t-CO2) results (million t-CO2) emissions Purchased products and ser- GHG emissions were reduced by using smaller parts 1 vices 7.42 6.58 −11.3% and reducing product weight. Compliance and Management 2 Capital goods 0.68 0.57 −15.7% As a result of screening investments based on their importance, GHG emissions were reduced. Fuel- and energy-related 3 activities not included in Scope 0.2 0.2 −1.3% GHG emissions were reduced by about 3,000 tons 1 and 2 due to energy conservation efforts.

Upstream GHG emissions were reduced due to modal shifts 4 Transport and delivery (Up- 0.57 0.52 −9.1% from airplanes to ships and railways as well as stream) decreases in packing volume and product weight. GHG emissions decreased because waste volume was 5 Waste generated in operation 0.04 0.03 −15.1% reduced through sorting and recycling.

GHG emissions increased mainly due to business 6 Business travel 0.05 0.06 12.8% travels for business expansion.

Employee commuting was assessed as accounting for 7 Employee commuting − − less than 0.1% of total GHG emissions.

8 Leased assets (Upstream) − − Not covered by the calculation Reputation GHG emissions were reduced mainly through energy

Toshiba 9 Direct GHG emissions (Scope 1) 0.82 0.76 −7.3% conservation efforts and reorganization of business/ production sites. Indirect emissions associated GHG emissions were reduced mainly through energy 10 with energy-derived emissions 2.15 2.0 −7.0% conservation efforts and reorganization of business/ (Scope 2) production sites.

Transport and delivery (Down- GHG emissions were reduced due to decreases in 11 stream) 0.11 0.1 −8.9% packing volume and product weight.

12 Processing of sold products − − Not covered by the calculation Advancing Stage to the Next

Downstream GHG emissions decreased mainly because the energy- 13 Use of sold products 80.51 58.28 −27.6% saving performance of TVs and air conditioners improved.

14 End of life treatment of sold −0.24 −0.37 −57.0% GHG emission reduction effects increased through products use of a wider range of recyclable materials.

15 Leased assets (Downstream) − − Not covered by the calculation

16 Franchises − − Not covered by the calculation

17 Investments − − Not covered by the calculation

Total 92.31 68.73

43 Toshiba Group Environmental Report 2013 chapter3 chapter3 High-efficiency Manufacturing

Accelerating the implementation of energy conservation measures Vision and Strategies Topics through energy-saving diagnosis

Toshiba Group is working with JFE Techno-Research Corp. to perform energy conservation diagnoses at its production sites. By working with a third party, the Group aims to clarify whether there are any elements of waste in production equipment or its operation that have gone unnoticed by internal diagnoses as well as to identify specific improvement measures (including exam- ining the cost effectiveness thereof), thus stepping up efforts to take environmental measures at production sites and enhance overall competitiveness. In the future, the Group will expand the scope of this initiative to cover not only Japanese and Chinese bases but also those in Southeast Asia while simultaneously developing diagnostic teams within its organization, thereby accelerating efforts to establish a global manufacturing system with fewer environmental impacts.

■ Example energy conservation diagnosis scheme Expansion of ECPs Presentation of specific Narrowing down of processes improvement measures based to be diagnosed on objective data Preparation of Diagnosis by a third Formulation of an Effective measurement preliminary materials party implementation plan of effects

Records of machinery and tools Analysis of differences between Formulation of short-, medium-, Application of measures to summarizing the number of the operating capacities of and long-term plans based on other departments pieces of equipment and their equipment used and actual energy conservation effects and operating capacities and uses, operations investment costs production capacities, etc. Manufacturing High-e ciency

Toshiba Medical Systems Corporation, Nasu Operations

Toshiba Medical Systems Corp. is accelerating its improvement efforts by launching a project to promote energy conservation. Examples include reviewing the operation of 243 facilities, including soldering pots and reflow furnaces, which consume large amounts of energy, and replacing machinery and tools with high-efficiency models, such as introduction of LED lighting earlier than initially planned (installation of 5,700 LED lamps was completed in June 2013). Further, the company is actively striving to conserve energy, including by downsizing machinery and tools through reviewing their specifications.

Expected to Expected to ■ Improvement of operation reduce CO2 ■ Use of LEDs for plant lighting reduce CO2 emissions by emissions by Compliance and Management of production equipment 62 tons 653 tons annually annually

Soldering pot Reflow furnace

No. 1 No. 2

Concentrating production in Concentrating production in one Replacing 400-watt mercury lamps Replacing 110-watt fluorescent soldering pot No. 1 and completely of three furnaces according to with 200-watt LED models lamps with 70-watt LED models discontinuing use of No. 2 production plans

Toshiba HA Manufacturing (Nanhai) Co., Ltd. Reputation

Toshiba HA Manufacturing (Nanhai) Co., Ltd., one of Toshiba Group’s bases in China that emits a large amount of CO2, is making company-wide improvement efforts with the aim of reducing the amount of standard coal* used by 1,298 tons compared to the 2010 level during the period from 2011 to 2015. In order to accelerate its efforts to take improvement measures, the company has performed an energy conservation diagnosis to identify items (e.g., boilers and plant lighting) that have high potential to result in energy conservation. The company is currently taking energy conservation measures systematically. Advancing Stage to the Next ■ Use of LEDs for plant lighting ■ Other energy conservation items

Energy conservation items Reduction in CO2 emissions

Energy conservation through improved management of boiler operation (improvement of air ratios and retaining of boilers’ and steam pipes’ Expected to temperatures) reduce CO2 emissions by Introduction of inverter pumps in the cooling 1,035 tons Reduce CO2 tower to conserve energy through optimization of annually emissions by pump operation speed 1,092 tons annually Energy conservation through prevention of air leaks from air compressors * Standard coal: A coal equivalent of energy. One kilogram of standard coal has a thermal value of 7,000 kilocalories.

Toshiba Group Environmental Report 2013 44 chapter3 chapter3 High-efficiency Manufacturing Efficient Use of Resources

In order to help build a sound material-cycle, sustainable society, Toshiba Group works to reduce the volume of raw materials and water re- Vision and Strategies sources used for its business operations and to use them effectively, striving to reduce the volume of waste generated and finally disposed of.

Reducing the total waste volume Reducing the final disposal volume Toshiba Group is working to reduce waste generation by In order to create a sound material-cycle, sustainable soci- minimizing the volume of waste generated per unit produc- ety, Toshiba Group is working to achieve zero waste emis- tion, which indicates business process efficiency improve- sion—an initiative of reducing final landfills to zero by pro- ment, as well as by reducing the total volume of waste to a moting the reuse and recycling of waste. level below the Earth’s environmental capacity. ● Results of FY2012

● Results of FY2012 The percentage of final landfills to the total volume of waste Expansion of ECPs In FY2012, the total volume of waste generated per unit generated by Toshiba Group in FY2012 was 1.7%, which ex- production was 96% compared to that of FY2010, exceed- ceeded the initial target (1.8%). ing the initial target by 4 percentage points. The volume of ● Future initiatives waste (excluding that of objects with value) totaled 92 thou- One goal of the Fifth Environmental Action Plan is to reduce sand tons, which is 15 thousand tons lower than the initial the percentage of final landfills to 0.5% in FY2015. To this target. end, Toshiba Group will further promote the reuse and recy- ● Future initiatives cling of waste, particularly at overseas sites with high reduc- ■ In the Fifth Environmental Action Plan, Toshiba Group tion廃棄物最終処分量と最終処分率の推移 potential. Manufacturing High-e ciency aims to reduce the volume of waste per unit production in FY2015 by 10% compared to FY2010 and to reduce the total volume of waste to 117 thousand tons.

■ ■ Waste volume and total volume of waste generated per Final waste disposal volume and the final disposal rate unit production 8.0 Plan 5.7 4.6 Per unit real production (compared to the FY2010 level) (%) (1,000 tons) 2.4 1.8 (1,000 tons) Result 24.0 1.5 190 Plan Other 100 100 2.1 2.0 0.5 1.0 20.9 1.7 96 Cinders Final disposal rate (%) Other 68 Slag 90 5.1 Result Compliance and Management 97 96 Waste plastics 8.0 0 120 Scrap metal 109 3.3 13.0 21 20 105 117 0.4 19 96 92 Scrap metal 2.9 Wood chips 12 12 19 3.9 9 20 14 Waste cloths 0.0 0.0 0.5 Waste plastics 17 8 7 9 8 6 0.3 8 8 7 6 5.6 1.1 0.0 11 8 7 Sludge 6.9 0.0 Waste paper 23 11 12 7 5.5 0.3 0.4 0.2 7 8 1.4 0.0 20 22 9 2.1 5.3 0.0 19 13 4.8 0.2 13 1.0 0.9 0.3 0.3 Sludge 50 6.0 5.9 0.3 40 35 33 32 38 Waste paper 0.4 0.3 0.4 0.3 4.4 3.4 0.4 0.3 3.0 2.8 2000 2008 2009 2010 2011 2012 2013 2015 (FY) 2000 2008 2009 2010 2011 2012 2013 2015 (FY)

■ Breakdown of the total volume of waste generated (FY2012) ■ Breakdown of the final waste disposal volume (FY2012)

Digital products Other 2% Asia 4% Digital products Other 2% China Asia 9% Electronic Japan 9% 9% 3% China 1% 5% Home Devices Reputation Home Electronic appliances 1% appliances Waste Devices Europe Waste 7% 1% Final Final 6% volume 45% volume disposal disposal 92 thousand Americas 92 thousand volume Europe volume 16% tons tons 4.8 thousand 21% 4.8 thousand Social tons tons Japan Social infrastructure Americas 38% 65% infrastructure 87% 69% By business segment By region By business segment By region Advancing Stage to the Next Example 3-3 Promoting high-efficiency manufacturing through the development of manufacturing technologies

Toshiba Industrial Products Manufacturing Corporation Toshiba Industrial Products Manufacturing Corporation, which manufactures motors for hybrid electric vehicles, uses its original technologies— large high-precision die technology and technology to deliver and stabi- Rotor core Stator core Completed motor lize the thin plate and wide material—to perform double-row punching in laminated iron core processing. This new double-row method reduces Conventional single-row layout the volume of waste generated by 50% compared to conventional single-row progressive punching. Double-row punching, which produces two molds with a single press punch, has not only improved manufacturing efficiency but also reduced energy consumption. New double-row layout

45 Toshiba Group Environmental Report 2013 chapter3 chapter3 High-efficiency Manufacturing

● Promoting recycling ● Future initiatives In FY2012, Toshiba Group recycled 265 thousand tons of re- Under the Fifth Environmental Action Plan, Toshiba Group Vision and Strategies sources, 20 thousand tons more than in FY2011. 94% of the aims to reduce the amount of water received per unit real waste generated was reused effectively as various resources. production by 10% compared to the FY2010 level in FY2015. The recycled resources consisted mainly of scrap metal and We will continue to promote the reuse and recycling of cinders, and 96% of them were used effectively for material water at domestic semiconductor plants, which account for recycling (recycled into materials for products), and the 72% of the water received by Toshiba Group. Business and remaining 4% for thermal recycling (heat recovery). In the production sites located in countries where the amount of future, Toshiba Group will continue to increase the total vol- water resources per person is 1,700 m3 or less annually or ume of resources recycled and at the same time will strive for in watersheds where over 60% of water is taken from rivers higher quality recycling chiefly by increasing the percentage of represent about 1% of the total amount of water received by resources recycled into materials. the Group. We will step up our efforts to reduce the amount of water received by our business and production sites in Expansion of ECPs such water stress areas.

■ リサイクル量の内訳（2010年度） ■ Breakdown of the volume recycled (FY2012) ■ Volume of water received and that per unit production

Thermal recycling 4% Per unit real production (compared to theFY2010 level) (%) Material recycling 96% Result Plan Other 13% 100 97 96 94 Cinders 90 Waste plastics 27% 3% Volume Manufacturing High-e ciency recycled Waste paper 8% 87 265 thousand tons 43.8 42.3 42.0 Sludge 10% Scrap metal 40.7 41.6 40.8 24% Volume of water received (million m3) Waste acid 11% 2000 2008 2009 2010 2011 2012 2013 2015 (FY)

Efficient use of water resources

In response to a global increase in concerns regarding water ■ Breakdown of the volume of water received (FY2012)

problems, Toshiba Group is promoting sustainable water Compliance and Management Digital Other China 3% resource management. In particular, Toshiba Group is step- products 3% Europe 2% Asia 5% 5% ping up water management at business and production Home Americas 2% sites located in water stress areas where supply-demand appliances Volume of Volume of 6% water received water received relations in water resources are tight. In recognition of the 40.8 40.8 million m3 million m3 fact that securing water resources involves environmental Social Electronic impact even in countries with well-developed water supply infrastructure Devices Japan 88% 14% 72% infrastructure, we are working to reduce the volume of wa- By business segment By region ter received.

● Results of FY2012 ■ Volume of water recycled (FY2012) The volume of water received per unit production in FY2012 was 87% of the total for FY2010, exceeding the initial target by 9 percentage points. The total volume of water received Volume of Reputation water was 40.76 million m3, about 0.9 million m3 less than in the 13.9 recycled 12.5 12.1 13.5 13.2 3 previous year. (million m ) 6.2 Volume of water reused 3.7 3 2.7 2.8 2.8 2.1 2.2 (million m ) 2000 2008 2009 2010 2011 2012 (FY) Advancing Stage to the Next

Example 3-4 Initiatives for water saving at overseas business and production sites

Toshiba JSW Turbine and Generator Private Limited Toshiba JSW Turbine and Generator Private Limited, which was established in India in 2008, constructed a comprehensive water recycling system, thereby reducing wastewater to zero. Production wastewater is recycled for use as industrial water in manufacturing processes, while living sewage is recycled for use as water for planting. Also, by storing rainwater and using it as water for planting, the company strives to reduce the volume of precious water received. Production wastewater treatment facility Rainwater reservoir

Toshiba Group Environmental Report 2013 46 chapter3 chapter3 High-efficiency Manufacturing Management of Chemicals

Toshiba Group is striving to manage chemical substances appropriately in the processes of its business operations. Using alternatives, improving processes, and taking other measures, the Group is reducing emissions of the tar- Vision and Strategies geted substances.

Managing chemical substances Reducing emissions of chemical substances

Toshiba Group classifies standards for the handling of chem- Toshiba Group strives to reduce the consumption of chemical substances into the three categories of prohibition, ical substances by designating substances that have large reduction, and control, and manages chemical substances ac- direct impacts on the environment as those targeted for cording to the regulations for each category. The relationship reduction. By business segment, semiconductors, home between substance ranking and management classifications, appliances and social infrastructure systems account for

which shows the concept underlying this initiative, is indicat- over 90% of the total emissions of such substances, and by Expansion of ECPs ed in the figure below. Approximately 2,000 types of chemical region, 70% of such emissions originate from Japan. substances are classified into three ranks (hazard level A, B, ● Results of FY2012 and C) based on the regulatory levels set by environmental In FY2012, Toshiba Group gave priority to taking measures legislation, data on carcinogenic chemicals, and other factors. for solvents used in cleaning and resist coating, which ranked The classifications of prohibition, reduction, and control are high among such emissions, and promoted such initiatives as determined by judging risks for each chemical substance us- using alternative substances, installing combustion detoxify- ing the ranking of the substance equivalent to hazard levels ing devices and improving manufacturing processes in order

and emissions equivalent to exposure to the substance. to reduce the use of raw materials. As a result, Toshiba Group Manufacturing High-e ciency reduced emissions of substances targeted for reduction by ■ Substance ranking and management classifications 10% (approximately 150 tons) compared to the previous year Risk=Hazard×Exposure * Substance rank Approximately 2,000 types Rank A: Substances whose manufacture and use are and by 45% compared to the FY2000 level. of chemical substances prohibited by laws and regulations Rank B: Substances whose usage standards are ● Future initiatives Substance specified or whose quantity of use is required * to be reported by laws and regulations or In the Fifth Environmental Action Plan, the Group aims to rank whose carcinogenic class is I or II (= Hazard) Rank C: Substances that are mentioned in laws and regulations but subject to relatively few reduce the emissions of substances in FY2015 to 1,967 tons. restrictions or whose carcinogenic class is III Prohibited substances Rank A It plans to use alternative substances and increase material Substances targeted 58 types of substances, for reduction efficiency by improving processes as an incoming counter- including: Amount of • 551 substances, Rank B emissions including chemical measure and introduce emission removal and collection • Asbestos (= Exposure)

substances designated Compliance and Management • Polychlorinated biphenyl In accordance equipment as a outgoing countermeasure. with Toshiba as Type I under the • CFCs and halons Group’s Is a substance PRTR Law* as well as • Carbon tetrachloride policy emitted in excess volatile organic Rank C of the prescribed ■ Emissions of substances targeted for reduction • 1,1,1-trichloroethane amount? compounds (VOC) and • Tetrachloroethylene YES other substances • Trichloroethylene • Sulfuric acid 100 Emissions compared to the benchmark year (%) NO • Hydrogen chloride • Benzene Managed substances • Cyclohexanone 81 78 • Dichlorobenzene 74 73 According to the amount • Butyl acetate 61 65 • Dichloromethane of emissions: • Isopropyl alcohol 55 • Control of the amount • Propylene glycol Per unit real production of emissions monomethyl ether (compared to the • Control of the amount • Hydrogen fluoride and FY2000 level) (%) 60 56 59 of use its water-soluble salts 46 Plan • Control whether the 2,512 39 Result substance is used or not • Other Not covered by PRTR 1,613 2,047 1,852 1,839 1,967 * Law Concerning Pollutant Release and Transfer Register (t/year) 1,654 1,541 1,694 1,625 1,538 1,534 1,393 1,242 ■ PRTR-based material balance Covered by 1,124 PRTR 899 The balance of Toshiba Group’s total material volume based on the (t/year) 393 314 305 299 269 PRTR Law. 2000 2008 2009 2010 2011 2012 2013 2015 (FY) Reputation http://www.toshiba.co.jp/env/en/industry/prtr.htm ■ Breakdown of emissions of substances targeted for Amount Amount Amount released reduction (FY2012) recycled released to 480 t the atmosphere 269 t 201 t Digital products Other Asia 12% China Amount Amount 7% 1% 13% released to handled hydrosphere Home 68 t Europe 19,053 t appliances 20% Emissions: 6% Emissions: Americas 1,393 5% 1,393 ton ton

Electronic Advancing Stage to the Next Japan Social Devices infrastructure 72% 47% 25% Amount By business segment By region transferred Amount as waste 435 t consumed Amount 12,351 t released to Amount Amount sewerage removed and ■ Emissions of top five substances targeted for reduction transferred 2 t treated 437 t 5,514 t (FY2012) (t) ●The amount consumed refers to the amount of substances covered by PRTR that are changed into other substances by chemical reaction or transferred outside along with products whether they are contained Cyclohexanone 391 therein or accompany them. ●The amount of removed and treated refers to the amount of substances covered by PRTR that undergo Butyl acetate 194 such processes as incineration, neutralization, decomposition, reaction treatment and are changed into other substances inside operation sites. Isopropyl alcohol 170 ● Landfills at operation sites (stable, controlled, or isolated) are equivalent to the amount emitted. The Propylene glycol amount released to public sewerage is categorized as the amount transferred. monomethyl ether 99 ●The difference between the amounts transferred and recycled is determined based on whether fees are charged for recycling of the materials. Accordingly, waste is included in the amount transferred if Toshiba Xylene* 79 Group asks contractors to dispose of it and pay for the service even if the purpose is to recycle it. * Covered by PRTR

47 Toshiba Group Environmental Report 2013 chapter3 chapter3 High-efficiency Manufacturing

Reduction in the amount handled Management of substances that have impacts on

the atmosphere and hydrosphere Vision and Strategies ● Results of FY2012 and future initiatives Toshiba Group is working to grasp the extent of emissions of In FY2012, semiconductors and social infrastructure systems sulfur oxides (SOx) and nitrogen oxides (NOx), both of which accounted for over 90% of the total amount of chemicals are major causes of air pollution, as well as water pollutants handled, with substances used for chemical reactions and and ensure appropriate management of such emissions. wastewater treatment ranking high among chemicals. The Each production site voluntarily sets the maximum permis- material balance for PRTR-covered chemicals indicates sible levels of concentrations for these substances and com- that 29% of them are removed through neutralization and plies with these prescribed standards, but total emissions absorption and 65% are consumed together with the prod- fluctuate as production volumes increase or decrease. ucts that contain them, which taken together represent the Production sites in Europe and North America have already majority of the chemicals handled. It also indicates that only applied to wastewater the environmental impact risk as- Expansion of ECPs about 1% of the chemicals used are discharged into the sessment method (whole effluent toxicity (WET)* method), atmosphere or hydrosphere. Under the Fifth Environmental which uses biological indicators. Those in Japan have also Action Plan, the Group is adding the amount of chemicals started to consider using it as a new indicator of wastewater handled per unit production as a new target indicator, management. thereby aiming to reduce the amount by 5% compared to * Whole Effluent Toxicity the FY2010 level in FY2015. ■ Impacts on the atmosphere ■ Impacts on the hydrosphere Amount of impact = concentration of Amount of impact = concentration of ■ Amounts of substances targeted for reduction handled each substance × amount of substance each substance × amount of substance emitted (based on the Air Pollution discharged (based on the Water Other* Per unit real production(compared to the FY2010 level) (%) Control Act) 144 (t) Pollution Control Act) Plan Manufacturing High-e ciency Result 148 65 71 49 (t) 102 149 2,610 65 100 100 Soot 98 55 1,929 95 1,897 2,128 1,799 Sulfur oxide 1,761 1,634 1,564 Nitrogen oxide 94 Not covered by Suspended 116 matter PRTR (t/year) 88 53,887 56,167 55,573 730 44,034 53,370 49,784 3,979 3,819 3,861 Covered by 601 3,189 Total PRTR (t/year) 2,790 nitrogen 26,919 17,703 18,671 19,053 183 14,601 14,548 204 193 175 165 788 2000 2008 2009 2010 2011 2012 2013 2015 (FY) 655 668 686 723 Chemical oxygen ■ Breakdown of the amounts of substances targeted for demand reduction handled (FY2012)

2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) Compliance and Management Digital products, other 1% Starting in FY2007, data include those for Sigma Power Ariake and Sigma Power Tsuchiura. Asia 2% China 2% * N-hexane extracts, phenols, copper, zinc, soluble iron, soluble manganese, total chromium, Home total phosphorus, and nickel appliances 3% Europe 5%

Amounts Amounts Social handled Americas handled infrastructure 23% 30% 74,626 74,626 Management of ozone-depleting substances ton ton Electronic Devices Japan 68% 66% Toshiba Group possesses specified chlorofluorocarbons By business segment By region (CFCs), which deplete the ozone layer, as coolant for air conditioners installed in factories; we appropriately dispose of ■ Amounts of top five substances targeted for reduction such CFCs in accordance with the law. In FY2011, the Group handled (FY2012) had 14 tons of specified CFCs and 281 tons of other types (t) of fluorocarbons. In FY2012, due to measures such as the Sulfuric acid 25,815 replacement of old air conditioning systems with high-effi- Hydrogen chloride 13,111 ciency systems, we reduced the amount of specified CFCs to Reputation Zirconium dichloride oxide 7,877 12 tons and the amount of other fluorocarbons to 256 tons. Hydrogen uoride and its water-soluble salts* 6,731 The amount of specified CFCs possessed by the Group was Cyclohexanone 5,659 reduced by 11% compared to the previous year. We will con-

*Covered by PRTR tinue to properly manage CFCs.

Example 3-5 Reduction of the amount of chemicals handled through reuse in semiconductor photolithography Advancing Stage to the Next

Yokkaichi Operations, Toshiba Corp. Yokkaichi Operations Contractor Plant Toshiba had been outsourcing the collection of waste chemicals used in semiconductor photolithography to collectors and had been using newly purchased liquids in all Tank for Tank for liquid Tank for processes. In order to reduce the amount of chemicals used, we reviewed the levels of new liquid to be reused Truck recycled liquid transport purity required for different processes and identified those processes in which recycled

chemicals having lower purity than new liquids could be used. Also, by adjusting the Distillation tower Photolithography process mixing ratio of waste liquids collected from manufacturing processes, which contain different elements, we reduced the workload required for distillation and purification, thereby facilitating delivery of recycled products that meet purity specifications. Truck transport Toshiba outsources distillation and purification of waste liquids to outside contractors. Tank for Collection These measures made it possible to reduce purchases of new liquids by 10%. We are waste liquid tank evaluating the possibility of using recycled chemicals in a wider range of processes.

Toshiba Group Environmental Report 2013 48 chapter3 chapter3 High-efficiency Manufacturing Response to Environmental Risks

Toshiba Group is working to purify contaminated soil and groundwater by ascertaining the present condition of soil and groundwater at its production sites. The Group’s basic policy is to prevent chemical substances from contaminating soil and groundwa- Vision and Strategies ter and identify environmental liabilities such as PCB-containing equipment and dispose of such equipment in a systematic way. Preventing contamination and reducing contam- Soil and groundwater purification ination risks Toshiba Group is working to purify contaminated soil and In order to prevent contamination with chemical substanc- groundwater by ascertaining the present condition of soil es and reduce contamination risks, Toshiba Group inde- and groundwater at its production sites. The Group is also pendently established the Structural Design Guidelines taking safety measures for environment-related equipment to prevent leaks of chemicals at its eight types of environ- to prevent contamination with chemicals and reduce envi- ment-related facilities such as wastewater treatment plants, ronmental risks. A survey of all production sites confirmed and its overseas sites are also promoting continuous im- Expansion of ECPs contamination at 14 sites, where soil and groundwater provements in this area. In FY2012, Toshiba Group achieved contamination with volatile organic compounds (VOCs) has a compliance rate of 99.0% for all of Toshiba’s sites and been purified, and the results are being monitored. VOCs in 93.8% for all of its group companies’ sites in Japan. groundwater are collected and eliminated mainly using the In its overseas operations, at the time of establishing a water pumping method. new business or relocating a business, Toshiba Group also Toshiba Group uses the water pumping method to purify assesses contamination risks by investigating land use and soil and groundwater mainly in areas with high concentra- contamination histories. Assessments are made in accor- tions of VOCs, but if the VOC concentration in such areas dance with laws and regulations in each country, and Toshi- is lowered due to progress in purification, the Group takes ba Group’s own rigorous standards are applied in countries Manufacturing High-e ciency such measures as stepping up water pumping efforts in oth- without relevant legislation. er areas with relatively high VOC concentrations. In FY2012, ■ Rate of compliance with the Structural Design Guidelines (FY2012) the Group collected 613 kg of VOCs. The amount collected was about 20% less compared to the previous year, but this Dikes and pans Toshiba (99.0% on average) is chiefly because the amount of VOCs collected per liter of 100 Scrubbers Oil storage 80 water pumped is gradually decreasing due to the progress 3 facilities (m ) 60

made in purification through drastic measures that make 40 the most of the opportunity presented by land modifica- 20 tions, methodological changes (from water pumping to Plating facilities 0 Waste storage sites in-situ purification), and declines in relative concentrations Compliance and Management Overseas group companies of VOCs as a result of purification. In the future, Toshiba (75.6% on average)

Group will continue to advance soil and groundwater pu- Wastewater Chemical storage sites rification using appropriate methods, taking into account treatment facilities Piping for chemical liquid world trends in the progress of purification technology. At and waste liquid (m) Group companies in Japan the same time, it will strive to ensure full communication (93.8% on average) with local governments and residents in neighboring areas Toshiba through tours of purification facilities and other public rela- Group companies in Japan Overseas group companies tions activities. ■ Purification of soil and groundwater contaminated with volatile organic compounds

Business and production site Location Progress in purification Purification method*1 Amount collected*2 (kg) Fukaya Complex, Toshiba Corp. Fukaya, Saitama Prefecture Being monitored*3 A — Reputation Former site of Asia Electronics Inc.’s Yokohama Operation Center Yokohama, Kanagawa Prefecture Being monitored A, E, G — Komukai Complex, Toshiba Corp. Kawasaki, Kanagawa Prefecture Purification in progress A, G 73.7 Being monitored (North district) D, F, G — Himeji Operations (Semiconductors), Toshiba Corp. Taishi Town, Ibo County, Hyogo Prefecture Purification in progress A 242.0 Himeji Operations, Toshiba Corp. Himeji, Hyogo Prefecture Construction work -> Being monitored E, F, G — Oita Operations, Toshiba Corp. Oita, Oita Prefecture Purification in progress A 0.6

Fuji Operation, Toshiba Carrier Corp. Fuji, Shizuoka Prefecture Purification in progress A, B 117.0 Advancing Stage to the Next Tsuyama Operation, Toshiba Carrier Corp. Tsuyama, Okayama Prefecture Purification in progress A, B 1.0 Kawamata Town, Date County, Kawamata Seiki Co., Ltd. Fukushima Prefecture Purification in progress A 0.0 Kitashiba Electric Co., Ltd. Fukushima, Fukushima Prefecture Purification in progress A 0.1 Former site of Toshiba Shomei Precision Corp.’s Kawasaki Works Kawasaki, Kanagawa Prefecture Being monitored A, E, F — Former site of Toshiba Lighting & Technology Corp.’s Iwase Works Sakuragawa, Ibaraki Prefecture Purification in progress A 0.1 Ibaraki Plant, Lighting Device & Fixture Corp. Joso, Ibaraki Prefecture Being monitored A, B — Kimitsu Operation Center, Toshiba Components Co., Ltd. Kimitsu, Chiba Prefecture Purification in progress A, B 178.4 *1 Purification method: (A) groundwater pumping, (B) soil gas suction, (C) reduction decomposition, (D) oxidation decomposition, (E) interception containment, (F) removal by excavating soil, and (G) bio-activation. *2 Amount collected: Amount collected from April 2012 to March 2013. *3 Monitoring: Monitoring to confirm how things develop after work that will allow measures to be taken or purification is completed.

49 Toshiba Group Environmental Report 2013 chapter3 chapter3 High-efficiency Manufacturing

In order to ensure effective prevention of groundwater contamination, an act revising part of the Water Pollution Identifying environmental liabilities Vision and Strategies Control Act was promulgated on June 22, 2011 and came With the enforcement of the Act on Special Measures concern- into force on June 1, 2012. To prevent groundwater from ing Promotion of Proper Treatment of PCB Wastes, keepers of becoming contaminated with hazardous substances*4, new PCB waste are required to appropriately dispose of PCB waste. provisions have been added that require those who install The revision of the Enforcement Ordinance in December 2012 facilities where hazardous substances are used, stored, or moved back the deadline for disposal of PCB waste until March otherwise handled to comply with structural, equipment, 2027. At March 2013, Toshiba Group reported environmental and usage standards to block hazardous substances from liabilities of approximately 8.5 billion yen as expenses for the entering the ground and to record and maintain records of outsourcing of disposing of PCB waste by making it harmless. periodic inspection results. As early as 1990, Toshiba Group These expenses cover the disposal of such items as PCB-con- established the Structural Design Guidelines, an initiative taining products stored and managed at production sites na- that anticipated the purpose of these revisions to the Act, tionwide. The Westinghouse Electric Company group, a consol- Expansion of ECPs and has since taken actions in accordance with the Guide- idated subsidiary of Toshiba Corp., complies with U.S. federal, lines. state, and other local legislation concerning the discharge of *4 As stipulated in Article 2 of the Order for Enforcement of the Water Pollution Control pollutants, disposal of hazardous waste, and other activities Act, the 28 hazardous substances subject to regulation include cadmium, lead, and tri- that lead to environmental pollution. These legislations have chloroethylene (as of April 2013). affected and are expected to affect Toshiba Group in the future, but the status of legislation and regulations, the ability to Treatment of volatile organic compounds identify sites that require removal of contamination, waste dis- Example 3-6 in soil, Biostimulation method posal capacity, and other conditions are uncertain, and there- Manufacturing High-e ciency fore, it is difficult to accurately estimate final costs incurred by, and the time required for, future decontamination. Of those Himeji Operations, Toshiba Corp. costs, approximately 7 billion yen in environmental liabilities Toshiba used the biostimulation method to purify volatile or- was reported as a loss that could reasonably be estimated in ganic compounds contained in the soil at Himeji Operations. March 2013. The amount of environmental liabilities will be re- This method injects purifying chemicals that provide nutrients vised according to the progress in environmental assessments to microorganisms into the targeted soil in order to activate and purification work, technological innovation, and the new anaerobic microorganisms within the soil, thereby dechlo- demands of legislation. These do not have serious effects on rinating hazardous substances (trichloroethylene, etc.) and the financial condition and business performance of Toshiba decomposing them into harmless substances. Group, but the Group will continue to identify and disclose its environmental liabilities properly in the future. Compliance and Management Purification chemical Anaerobic microorganisms Information such as financial statements http://www.toshiba.co.jp/about/ir/jp/library/sr/sr2012q4.htm

Storage and management of PCB

VOC Since 1972, when the manufacture of products using polychlori- Decomposition nated biphenyl (PCB) was discontinued in Japan, Toshiba Group has kept PCB and PCB-containing products under strict surveil- Soil particles lance, controlled them, and reported their storage to the relevant authorities in accordance with the Waste Management and Diagram depicting soil purification by the biostimulation method Public Cleansing Act and the Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes. In addition to meeting the prescribed storage standards, the Group makes doubly sure through the installation of dikes and double con- Reputation tainers and other measures that they are stored appropriately. Preparation of purification chemical In order to treat PCB and PCB-containing products safely and as swiftly as possible, Toshiba, along with group companies, has registered some 7,400 transformers and condensers with Japan En-

Purification chemical container vironmental Safety Corporation (JESCO), which started to provide wide-area PCB treatment services in FY2005. In FY2012 about 523

transformers, large condensers and oil were treated. In the future, Advancing Stage to the Next Toshiba Group will continue to treat PCB and PCB-containing products properly in accordance with JESCO’s treatment plans.

Chemical liquid injected into soil

PCB-containing equipment being transported to Japan Environmental Safety Corp.

Toshiba Group Environmental Report 2013 50 chapter3 chapter3 High-efficiency Manufacturing Recycling of End-of-Life Products

Toshiba Group is expanding the recycling of end-of-life products globally. In Japan, too, the Group is actively promoting the recycling of end-of-life products centered on waste home appliances and personal computers. Vision and Strategies

and establish a collection scheme in a wider range of its over- Recycling end-of-life products globally seas locations. In order to ensure efficient use of resources and appropriate ■ Volume of end-of-life products recycled (global) treatment of hazardous substances, in accordance with recy- 129.7 cling regulations in each country and territory of the world, 2.3 119.3 5.1 3.5 Toshiba Group is promoting the collection and recycling of 99.4 11.9 4.8 PCs 2.2 9.8 9.9 90.7 products that customers have discontinued use of. The Group Medical equipment 4.5 11.4 2.9 promotes collection and recycling of end-of-life products while 8.2 17.4 5.5 Air conditioners Expansion of ECPs 8.7 18.3 9.5 striving to minimize collection and recycling costs as it complies 23.9 16.0 11.9 Business-use equipment, etc. with each country’s recycling scheme. In Japan, in addition to 45.8 21.2 0 19.8 17.7 Washing machines and dryers products covered by the Act on the Recycling of Specified Kinds 3.8 5.9 Refrigerators and freezers of Home Appliances, the Act on the Promotion of Effective 9.6 59.3 50.1 21.1 6.9 Utilization of Resources, and other relevant laws, the Group has 40.0 TV sets 12.4 22.1 established a unique scheme to collect medical equipment, 7.3 (1,000 t) elevators, MFP/POS systems, and other industrial equipment. 2001 2009 2010 2011 2012 (FY) Toshiba Group also responds appropriately to the Directive on

*1 Manufacturing High-e ciency Waste Electric and Electronic Equipment (WEEE) in Europe and ■ Breakdown of the volume of end-of-life products recycled (FY2012) state laws in the United States. Furthermore, it is preparing to respond appropriately to recycling-related laws enacted in Chi- Looking at the volume of end- Europe Americas 8.3% of-life products recycled by 11.9% Asia & Oceania na, India, and Australia and those expected to be enacted in the 0.1% future by governments in Asia, Central and South America, and region, in Japan 80% of the total volume is recycled, with Volume of other regions. end-of-life four types of home applianc- products recycled Japan ● Results of FY2012 90,700 t 79.7% In FY2012, in Japan and abroad, Toshiba Group collected about es accounting for the bulk of 112,000 tons of end-of-life products, of which it recycled about this. Major items collected and 91,000 tons. In Japan, due to the completion of collection of recycled in Europe, which has By region the next highest recycling ratio cathode ray TVs as a result of the start of digital terrestrial TV Compliance and Management broadcasting, the volume of the four types of waste home ap- after Japan, include TV sets, PCs, multifunctional peripherals pliances collected in Japan fell compared to the previous year. (MFPs), and medical equipment. In the U.S., major items in- However, the volume of end-of-life products collected overseas, clude TV sets and PCs. Maintaining the volume of end-of-life including in Europe and North America, remained fairly con- products collected in China and other Asian countries as well stant. In the future, Toshiba Group will continue to increase the as preparing to respond to recycling-related laws that are ex- volume of end-of-life products collected and recycled in Japan pected to be enacted in other areas are issues to be addressed in the future. ■ Volume of end-of-life products recycled by region (FY2012)

Europe: 10,800 tons Japan: 72,200 tons In accordance with the WEEE Directive, Toshiba is collecting and recycling In addition to the four types of home appliances and PCs, business-use equipment is end-of-life products throughout Europe. also collected and recycled. Business-use Medical Business-use equipment TV sets equipment equipment 10,600 t 7,800 t 60 t 800 t Medical Volume of Volume of equipment end-of-life Reputation end-of-life Refrigerators PCs products recycled 5,400 t products recycled t 21,100 t 900 t 10,800 t PCs 72,200 TV sets 100 t 9,100 t Air Washing conditioners machines 9,500 t 17,700 t Advancing Stage to the Next

Americas: 7,500 tons Toshiba Group is collecting and recycling end-of-life products such as TV sets and PCs through MRM*2, a recycler. Asia and Oceania: 100 tons Medical Business-use Toshiba Group is expanding its PC recycling program equipment equipment globally. In countries in Asia and Oceania, including 30 t 500 t Singapore, Thailand, Malaysia, and New Zealand, the Group Volume of end-of-life has voluntarily implemented a PC recycling program. PCs products recycled 1,800 t 7,500 t Medical TV sets TV sets equipment 10 t 5,200 t 6 t Volume of end-of-life products recycled *1 The WEEE Directive is a directive of the European Union concerning waste electrical and electronic equipment.

100 t *2 MRM: Electronic Manufacturers Recycling Management Company, LLC (MRM) is a recycling management firm PCs 80 t established jointly with Panasonic Corp. and Sharp Corp. in September 2007. For more details, visit its website: http://www.mrmrecycling.com/

51 Toshiba Group Environmental Report 2013 chapter3 chapter3 High-efficiency Manufacturing

Recycling of end-of-life products in Japan Examples of recycling initiatives Vision and Strategies In Japan, Toshiba Group is collecting and recycling end-of- In order to properly treat hazardous substances and ef- life products in accordance with the Act on the Recycling fectively collect and recycle valuables, Toshiba Group is of Specified Kinds of Home Appliances and the Act on the working to develop and apply recycling technology and Promotion of Effective Utilization of Resources. promoting recycling in cooperation with local communities and governments. ● Results of FY2012 The number of the four types of home appliances collected in FY2012 was approximately 1.65 million. We worked in cooperation with customers and other relevant parties to recy- Promoting recycling through the pelletization cle end-of-life products. The recycling rate for all four types Example 3-7 of insulation polyurethane for refrigerators Expansion of ECPs of products in FY2012 was 72% compared to that of the previous year. This was due to a rapid drop in the number of Term Corporation cathode ray TVs collected. The number of these appliances By pelletizing insulation polyurethane, which accounts for 94% collected by Toshiba Group represented approximately 15% of the waste generated from the dismantling and crushing of of the total of all such appliances collected in Japan, remain- refrigerators, Term Corporation contributes to the effective use ing at nearly the same level as FY2012 (1% increase com- of resources and reduction in environmental impact, including pared to the previous year). A total of 38,000 end-of-life PCs, increasing the percentage of waste that can be sold for recy-

a 2% increase compared to the previous year, were collected cling* and reducing CO2 emissions during transport. High-e ciency Manufacturing High-e ciency from businesses and homes for recycling. Toshiba Group will continue to contribute to resource recycling by recycling the four types of home appliances and PCs. Pelletization ■ Number of four types of home appliances and PCs collected in Japan Polyurethane material Pelletized polyurethane 33

342 * Percentage of waste that can be sold for prices relative to the total weight of waste products 610

27 Compliance and Management 232 507 37 225 Independent waste collection program for recy- 592 50 PCs 38 Example 3-8 625 Air conditioners cling end-of-life electric and electronic devices 443 260 176 Washing machines and dryers Toshiba Sales and Services Sdn Bhd 19 2,198 421 631 Refrigerators and 415 freezers 53 Liquid crystal TV sets Toshiba Singapore PTE, LTD. 355 430 1,294 966 Cathode-ray tubes 50 TV sets Toshiba Sales and Services and Toshiba Singapore are working 399 273 (1,000 units) in cooperation with local stores, sales agencies and recycling 2001 2009 2010 2011 2012 (FY) companies to develop a program* for recycling end-of-life electric and electronic devices. The program started in Febru- ary this year and approximately 500 end-of-life products (TVs, ■ Percentage of four types of home appliances PCs, refrigerators, etc.) have been collected so far. Through this and PCs recycled in Japan

independent collection program, Toshiba contributes to the Reputation reduction of waste and effective use of resources through ap- 88 Air conditioners 86 propriate recycling in Singapore. 84 84 Washing machines and 82 82 dryers 81 81 80 81 81 Cathode-ray tubes 80 78 TV sets 78 78 74 77 Refrigerators 71 and 69 freezers Advancing Stage to the Next 66 Liquid crystal 69 TV sets 68 63 PCs 63 63 57 60

56 (%)

2001 2009 2010 2011 2012 (FY)

Collection of end-of-life products at the service center

*Target products include home appliances (TVs, refrigerators and washing machines) and IT and telecommunications devices (notebook PCs, tablets, portable HDDs and projectors).

Toshiba Group Environmental Report 2013 52 chapter4 Chapter 4

Compliance and Management Vision and Strategies

We aim to become the most excellent company globally by

stepping up environmental management. Expansion of ECPs

INDEX Toshiba Group’s Policy for the Environment Summary of activities in FY2012 Toshiba Group promotes environmental management, Human Resource Development and P56 focusing on environmental issues as one of its top manage- Manufacturing High-e ciency Environmental Education ment priorities. It has also formulated the Basic Policy for the Number of certi ed eco-style leaders Environment which, in accordance with the Group’s guiding in FY2012 230 leaders principles, lays out specific environmental strategies to be shared by all members of the group.

Environmental Audits P57 Toshiba Group’s Basic Policy for the Environment We of the Toshiba Group recognize that the basic responsibility of Cumulative number of audits More than 300 people living today is to hand over the precious global environment in FY2012 to the next generation in a sound condition. Out of this recognition and in accordance with our Environmental Vision, we will strive to Compliance and Management create affluence and ensure coexistence with the earth. We will also contribute to realizing a sustainable society by aiming at achieving a Performance Evaluation and Risk Management P58 low-carbon and recycle-oriented society that strives to coexist with nature through our environmental activities. Percentage of ISO-14001-certi ed sites 100% ◆ Promoting environmental management •Toshiba considers environmental stewardship to be one of management’s primary responsibilities and promotes environmental activities in Number of violations of environmental 0 harmony with economic activities. laws and regulations in FY2012 •Toshiba assesses the impacts of its business activities, products and services on the environment, including with regard to biodiversity, and specifies objectives and targets with respect to the reduction of environmental impacts and prevention of pollution. •Toshiba strives to continuously improve environmental manage- Environmental Accounting P59 ment through internal audits and reviews of activities. • Toshiba complies with all laws and regulations, industry guidelines

Both capital investments and it has endorsed, and its own standards concerning the environ- Reputation environmental costs decreased, Investments 6.5 billion yen ment. •Toshiba strives to enhance the awareness of all its employees with increasing respect to the environment and requires that they make a practical Environmental costs billion yen cost-eectiveness. 43 contribution to the environment through their work. •Toshiba operates globally, and accordingly, promotes environ- Benefits 83.2 billion yen mental activities throughout Toshiba Group. ◆ Providing environmentally conscious products and services and reducing their environmental impact through business activities •Toshiba recognizes that natural resources are finite and implements

vigorous environmental measures to promote their effective and Advancing Stage to the Next practical use in terms of both products and business processes. •Toshiba develops and provides environmentally conscious products and services which contribute to the reduction of environmental impacts throughout their life cycles. •Toshiba strives to reduce the environmental impacts of all business processes, encompassing design, manufacturing, logistics, sale, and disposal, with a particular focus on the mitigation of climate change, efficient use of resources and management of chemicals. ◆ As a corporate citizen of planet Earth •Toshiba contributes to society through its environmental activities, which include the development and provision of excellent, environmentally conscious technologies and products in cooperation with society at large and with local communities. •Toshiba is committed to maximizing disclosure and transparency in communication with stakeholders and society at large in order to facilitate mutual understanding.

53 Toshiba Group Environmental Report 2013 chapter4 Chapter 4

Compliance and Management Vision and Strategies Aiming to become the most excellent com- at each business and production site, and our plans call for the pany in environmental management development of 2,000 such leaders globally by FY2015. As for In order to steadily implement the Environmental Action Plan environmental auditing, we have established an environmen- We aim to become the (for details, see page 11), which is an action plan to realize tal management system based on ISO14001 at all sites, and in the Environmental Vision that was developed based on the accordance with Toshiba Group’s unique environmental audit Basic Policy for the Environment, Toshiba Group is working system that covers the management of in-house companies, most excellent company globally by to strengthen its foundation of environmental management. product divisions, and production sites, we review progress in Specifically, the Group is promoting initiatives from three per- environmental management, ECP development, and environ- spectives: establishment of a management system, training mental action plans at business departments as well as raise Expansion of ECPs stepping up environmental management. and human resource development, and environmental audit- the overall level of environmental activities. ing. In terms of establishment of a management system, under In addition, as a tool for promoting environmental manage- the leadership of the Corporate Environmental Management ment efficiently and effectively, we have globally established Committee (a group-wide decision-making organization for en- an environmental management information system to manage vironmental management), we have organized meetings and and analyze the results of environmental audits as well as in- committees according to the issues to be addressed and re- house environmental information and environmental account- gional characteristics. Thus, we have established a system that ing data and to manage these in an integrate manner. Further- enables us to advance environmental management on a global more, we have created a performance evaluation system for High-e ciency Manufacturing High-e ciency scale. As part of our training and human resource development in-house and key group companies to reflect environmental programs, we provide a wide range of environmental educa- management initiatives in performance evaluations. In this tion to all employees, not to mention ensuring compliance way, we are pushing through initiatives to improve the level of with laws and ordinances. One program initiated in FY2012 is our environmental activities. to develop eco-style leaders who lead environmental initiatives

■ Compliance and management strategies

Strengthening the foundation of environmental management Compliance and Management

Building of a Reliable Organization

Establishment of Environmental management Education Environmental and Human Audits systems Resource Development Reputation

●Environmental management promotion system ●Toshiba comprehensive ●Development of eco-style environmental audit system ●Environmental management leaders information system ●Environmental education Details on and certifications Details on page 55 page 57

Details on Advancing Stage to the Next page 56

Management ●Performance evaluation system ●ISO-14001 ●Environmental accounting

Details on pages 58, 59 and 60

Toshiba Group Environmental Report 2013 54 chapter4 chapter4 Compliance and Management Environmental Management Structure

promotes internal and external communication. These Environmental management structure committees formulate detailed plans, identify potential Vision and Strategies Toshiba Group is promoting environmental management problems and review measures implemented to solve prob- worldwide as a group. There are four pillars upholding our lems in order to promote the sharing of information among environmental management: (1) strengthening of the man- all company members. Various committees specializing in agement structure, (2) provision of environmentally con- particular themes are engaged in activities in a wide range scious products and services, (3) development of environ- of areas under the supervision of these committees. mentally conscious manufacturing, sales and processing, ● Enhancement of the global environmental manage- and (4) promotion of communication. We take active mea- ment structure sures to promote initiatives focused on these objectives. At the global level, Toshiba Group has established corpo- The Corporate Environmental Management Office develops rate regional headquarters in Europe, the U.S., China and and implements corporate-level, important policy, strategy, Asia-Oceania in order to collect and share information on

and measures with the approval of senior managers and environmental policies and regulations in each region and Expansion of ECPs makes them fully known to all personnel of the company. to provide cooperation and support for group companies in Specifically, Toshiba semiannually convenes the Corporate these regions in developing effective environmental strate- Environmental Management Committee, a group-wide gies. decision-making organization regarding environmental Furthermore, Toshiba Group holds meetings of the Global management chaired by the Corporate Environmental Offi- Environment Management Committee to share activities im- cer, which consists of executive officers, environment man- plemented at a global level, thereby promoting the Group’s agement officers of in-house and key group companies, and environmental management in countries around the world. We also have an auditing system through which we provide

overseas environmental promotion managers of corporate Manufacturing High-e ciency regional headquarters. Meetings of the Committee make training for local auditors who conduct the environmental proposals for environmental measures related to manage- audits of overseas sites. ment, technological development, production, and sales, confirm and follow up on the progress in the Environmental ■■ グローバル環境経営ネットワーク Global environmental management network Action Plan to achieve the Environmental Vision, discuss and decide the overall policy and plans for environmental management, and make the company-wide policy fully known China Regional to all managers and employees. Headquarters Overseas group companies ■ Toshiba Group environmental management structure European Regional Toshiba Headquarters United States Regional Compliance and Management Headquarters President & CEO Overseas group companies Overseas group companies Corporate Environmental Asia-Oceania Regional Management Committee Corporate Environmental O cer Headquarters Overseas group companies Corporate Environmental Management O ce

President & CEO of in-house companies/key group companies Overseas Headquarters Environmental Management Information System Global Environmental Environmental Promotion Management Committee We have developed an Environmental Management Infor- Management Committee mation System in order to collect and manage environmen- Environmental promotion managers of tal data required to promote environmental management. in-house companies/key group companies The Environmental Management Information System makes

it possible to centrally manage and register not only per- Reputation Sites Overseas group companies formance data, such as energy consumption required for

In-house Companies Environmental Environmental Management business activities and the amount of waste generated from Committee by Overseas Region Management Committee these activities, but also environmental accounting informa- ECP Promotion Environmentally Conscious Environmental Communication Committee Business Operations Committee Promotion Committee tion and the results of site environment audits. It covers all Direct supervision Indirect supervision consolidated subsidiaries within the scope of management of Toshiba Group (590 companies in FY2012) and is accessi- Furthermore, in order to enhance the implementation of ble from countries around the world. actual strategies, the company convenes the Environmental Advancing Stage to the Next Promotion Management Committee, which comprises in- ■ house and affiliated companies’ environmental promotion Global information system managers, who are in charge of environmental management at the working-level. The following committees were organized as subgroups of the Corporate Environmental Management Commit- tee: the ECP Promotion Committee, which promotes the development of environmentally conscious products and technologies; the Environmentally Conscious Business Op- erations Committee, which promotes measures to reduce the environmental impact of business activities; and the En- Toshiba Net vironmental Communication Promotion Committee, which

55 Toshiba Group Environmental Report 2013 chapter4 chapter4 Compliance and Management Environmental Education/Human Resources Development

Training of eco-style leaders Environmental education and qualification Vision and Strategies Toshiba Group is promoting the training of Toshiba eco-style In order to raise the level of environmental activities, we leaders as part of “environmental education and human re- provide environmental education programs for all employ- source development” one of the new goals set forth in the ees. These education programs are composed of (1) general Fifth Environmental Action Plan. The objective is to certify education courses, (2) ISO 14001 education courses, and (3) employees having keen environmental awareness in all divi- specialized education courses, offering curriculums de- sions as Toshiba eco-style leaders and raise employees’ over- signed to meet the needs of different posts, occupational all environmental awareness through participation in internal roles, and specialties. All curricula for these courses are re- environmental programs and events. To become certified, viewed annually in order to help employees share the latest employees must obtain an internal or external environmental information. license (e.g., passing of the Eco Test sponsored by the Tokyo Starting in FY2011, we introduced training courses for biodi- Chamber of Commerce and Industry or becoming a Toshiba Expansion of ECPs versity promotion leaders. In the future, we will continue to environmental auditor or nature observation instructor). enrich our specialized environmental education programs. In FY2012, Toshiba certified 230 employees as Toshiba eco- style leaders compared to the goal of 200 stipulated in the initial training plan. Certified eco-style leaders serve as lead- ■ Environmental education system ers in various environmental activities such as guiding visitors General education ISO 14001 education Specialized education at eco-product exhibitions and holding café-style in-house Training courses for Education for the certification of events. internal auditors in-house environmental auditors e-learning (Site auditors/Technology auditors) (for all group

● Serving as a guide for eco-style tours company members) Manufacturing High-e ciency Introductory course for environmentally Toshiba Group exhibited at Eco-Products 2012, one of the Education for special employees conscious design Education for largest environmental exhibitions in Japan, and organized new employees Training course for biodiversity General education eco-style tours, which guided elementary and junior high promotion leaders school students through its booths. During the three-day peri- General course in environmental education (FY2012 edition)

od, a total of 652 students participated in these tours in which Introduction eco-style leaders explained about Toshiba Group’s environ- General course in environmentally conscious products and environmental initiatives. mental education (FY2012 edition)

General course in environmental education (FY2012 edition) Hello every one! We will offer the general course in environmental education for FY2012. As members of Toshiba Group,Considering let’s under the environment- at home stand Toshiba’s environmental initiatives throughWhere this are training Toshiba’s ECPs used? program and act in an environmentally conscientiousLet’s take amanner minute in and think. Compliance and Management order to help build a sustainable society.

Eco-style leaders explain each product in detail

● Holding of eco-style leader café events e-learning textbooks for FY2012 Eco-style leaders held a café-style talk show with conservation of biodiversity as the main theme and invited Ms. We provide training for auditors for our in-house environ- Takako Shirai, a singer-songwriter, and Mr. Yuji Kishi, Pro- mental audits, which was put into practice in 1993. In the fessor Emeritus of Keio University and representative of the training program for site auditors, candidates are screened Tsurumi River Basin Networking (NPO) as guests. Some 100 through group education, on-site training and a written employees, including eco-style leaders, participated in the examination. After the screening, candidates participate in event. One participant commented that, “I became interest- actual audits as assistants and submit reports in order to Reputation ed in the nature close at hand.” Another said, “I now think be certified as auditors. Technology auditors are certified about biodiversity differently.” through group education and a written examination. In FY2012, 15 employees were certified as site auditors, 11 as technology auditors and 19 as overseas local auditors. The current number of certified auditors is 349.

■ Training for auditors (site audit) Advancing Stage to the Next

Education and written Knowledge required Requirements for auditors examination (1 day) Global environmental Employment in positions issues equivalent to or higher than Scenes from the talk show with Ms. Takako Shirai (left) and Mr. Yuji Kishi (right) Environmental laws and section chief Chosen as a candidate regulations Auditors are classified into ISO environmental chief auditors, executive management system auditors, and assistant auditors depending on Environmental science and experience and skills Practical training technology Toshiba eco-style leader certification badge Toshiba’s environmental Other promotion rules and Education sessions are held structural guidelines, etc. This badge is made of wood from Assistance in audits once a year. (2 days, twice) The pass rate in FY2012 was forest development in Tokyo’s Tama about 68%. area. Toshiba Group has concluded the Submission of audit reports Toshiba Group certified auditors in FY2012 Agreement on Forest Development (twice) Activities with the Tokyo metropolitan Site auditors: 169 Overseas local auditors: 73 government. Certi ed as an auditor Technology auditors: 107

Toshiba Group Environmental Report 2013 56 chapter4 chapter4 Compliance and Management Environmental Audits

■ Audit results (FY2012) Toshiba Group’s environmental audit system ● Environmental management audit (total number of Vision and Strategies After conducting environmental audits for the first time in check items: 73) Total average 1989, Toshiba Group developed a comprehensive environ- 5 (5) Approach to mental audit system and has been using the system since information disclosure 4 (1) Environmental and communication policies and FY1993 to conduct audits based on standards established 3 systems 2 by the group. The audit system initially developed was com- 1 posed of four categories: (1) management system audits 0 (environmental activity promotion systems, etc.), (2) on-site audits (levels of compliance with rules regarding environ- (4) Products and (2) Level of legal mental facilities, etc.), (3) VPE audits (levels of achievement services compliance and risk (FY2012) management of goals set in voluntary plans), and (4) technology audits (FY2011) (3) Business processes Expansion of ECPs (product environment management system, environmental performance, etc.). Audits were conducted over two days to ● Environmental technology audit of products (total check these items. The most important of these categories number of check items: 36) were on-site audits, reflecting the shop-floor approach. This EMS audit* approach is incorporated into the environmental audits of Basic policies and promotion plans 100 sites conducted today. Participation of Promotion of members and eco-e ciency Environmental technology audits of products became an public relations 05 assessment activities independent category in FY1995. Environmental manage- 0 Manufacturing High-e ciency Management of ment audits were started in FY2004 to evaluate the level of chemical Mechanism to substances create ECPs environmental management in in-house companies and key contained in products group companies. Promotion of Measures to mitigate product 3Rs climate change regarding products ■ Toshiba Group’s environmental audit system Product/Technology audit President & CEO Disclosure of environmental information on products 100 Environmental Management Priority environmental Resource-saving Audit audit items 05 design Target for audit: In-house and key In-house and key In-house companies and 9 key group companies group companies 0 Compliance and Management group companies Reduction of hazardous chemical Reuse and substances recycling design Environmental Technology Measures to mitigate climate change Audit of Products regarding products Audit of about 40 divisions Division Division and about 80 product lines * Environmental Management System ● Environmental audit of sites (total number of check items: 220) 7% Level evaluation Environmental Audit of Sites C or lower in either the site Audit of 169 sites environmental audit or the on-site audit

Site Site A: Toshiba top level 15% 42% Factory Factory Building Building Site environmental Site environmental B: High level audit: A audit: B On-site audit: A On-site audit: B C: Ful llment of Toshiba requirements Reputation D: Ful llment of legal 28% 8% Since FY2006, these multiple audits have been systematized requirements Site environmental Site environmental E: Non-ful llment of legal audit: B audit: A so that they could be conducted in three types of audits: (1) requirements On-site audit: A On-site audit: B environmental management audits covering in-house com- We conduct over 300 audits, including self-audits, annually, panies and nine key group companies: (2) environmental and the total number of audits conducted since FY1993 ex- technology audits of products covering about 40 divisions, ceeds 3,000. We also provide in-house training for auditors and (3) environmental audits of sites covering 106 business who conduct audits.

and production sites, including non-manufacturing sites Advancing Stage to the Next and non-consolidated subsidiaries. In-house companies ■ Toshiba Group’s environmental audit records and group companies conduct self-audits (self-inspections) Single year Accumulated total (number of audits) (number of audits) within their companies based on the same standards in 500 3500 order to check business and production sites with relatively 3000 low levels of environmental impact that are not covered by 400 2500 site environment audits. Number of audits in a year Audit items for these three audits are reviewed annually to 300 2000 Accumulated improve evaluation level. In FY2012, we evaluated the level 1500 200 total number of audits of environmental management based on audit items linked 1000 to the goals of the Fifth Environmental Action Plan, thus 100 500 stepping up environmental management with the aim of 0 0 becoming one of the world’s foremost eco-companies. 1993 1994 2009 2010 2011 2012 (FY)

57 Toshiba Group Environmental Report 2013 chapter4 chapter4 Compliance and Management Performance Evaluation Risk Management

Reflecting the level of environmental man- ISO 14001

agement in performance evaluation Vision and Strategies Based on the Toshiba Group’s environmental audit system, In recognition of the importance of activities at business we evaluate the level of environmental management of all and production sites in promoting environmental manage- in-house companies and key group companies (9 compa- ment, we obtained ISO 14001 certification for all of Toshiba nies). Of the 73 items divided into 25 categories in 5 areas, Corp.'s 15 domestic business and production sites by 1997 we evaluate the level of environmental management based and have maintained the certification to this day. In addi- on those identified as generally important items or priority tion, all of Toshiba Group’s 179 business and production items for the year in question. In FY2012, we chose 11 per- sites eligible for certification had obtained ISO 14001 certifi- formance evaluation items from among 8 categories in 4 ar- cation. We will also acquire ISO 14001 certification for new eas: environmental policies and systems, business processes, overseas business and production sites that will become eli- products and services, and information disclosure and com- gible for certification as a result of future business expan- munication. Based on these items, we numerically evaluated Expansion of ECPs sion. environmental management. The results of the evaluations Toshiba Semiconductor & Storage Products Company, Toshi- of levels of environmental management are presented to ba Power Systems Company, Toshiba Elevator and Building the Performance Evaluation Committee and reflected in each company’s performance evaluation. Systems Corporation, and other companies are striving to obtain integrated certification for their headquarters, sales offices, factories, and their group companies in order to ■ Performance evaluation system develop environmental management systems for entire in- house and group companies. High-e ciency Manufacturing High-e ciency

5 areas, 25 categories, ■ Number of ISO-14001-certified sites and 73 items for FY2012 Eligible sites Certified sites Certification rate Toshiba Corporation’s Toshiba Group’s environmental audit system business and production sites 15 15 Domestic manufacturing sites 58 58 Domestic non-manufacturing sites 42 42 Environmental management audit 100% Overseas manufacturing sites 49 49 Overseas non-manufacturing sites 15 15 Environmental technology audit of products Total 179 179 The list of ISO 14001-certified sites is posted on the following URL: http://www.toshiba.co.jp/env/en/management/iso14001.htm

Environmental audit of sites Compliance and Management Risks and compliance

The levels of environmental management at in-house ● Compliance with environmental laws and regulations companies and key group companies are evaluated Toshiba Group sets self-regulation standards stricter than based on the items in the environmental management audit standards that are considered to be particularly legal standards regarding atmospheric emissions and dis- important. charges into hydrosphere so as to ensure that all its business and production sites comply with environmental rules. We Evaluation of the level of environmental management conduct in-house environmental audits in order to identify potential environmental risks and to prevent environmental Audit standards for FY2012 accidents. We also develop group-wide initiatives by sharing information, such as the results of internal audits on individ- (1) Environmental policies and ual business and production sites, new regulation policies, systems (2) Business processes and examples of accidents in other companies from among Reputation (3) Products and services group companies. (4) Information disclosure and There were no violations of environmental rules and regu- communication lations discovered in Toshiba Group companies in FY2012. Detailed information is presented on our website to show 4 areas; 8 categories; 11 items what measures are taken to ensure legal compliance at our business and production sites. ● Response to environmental risks Advancing Stage to the Next The results of the environmental The Risk Compliance Committee examines how to cope management evaluation are submitted to with diversified risks under the direct supervision of the the Performance Evaluation Committee. President and also takes measures to prevent environmental risks. Performance evaluation If any environmental risk should materialize, the Corporate Environment Management Division and the environmental Performance Evaluation Committee promotion managers and other concerned parties of in- house companies, key group companies and business and production sites work in collaboration under the direction Re ected in the performance evaluation of in-house companies and key group companies of the Corporate Environmental Officer to implement appropriate measures, including sharing information, checking relevant business and production sites and preventing recurrences.

Toshiba Group Environmental Report 2013 58 chapter4 chapter4 Compliance and Management Environmental Accounting ● As a tool for environmental management ■ Environmental costs and benefits (FY2008 - FY2012) With a view to promoting environmental management, Vision and Strategies (billion yen) Toshiba Group is working to introduce an environmental ac- 2.0 counting approach aimed at collecting accurate data on in- Costs Risk 39.9 0.4 0.1 prevention vestments and costs required for its environmental conser- benefits 44.4 40.8 vation initiatives and analyzing the collected data in order Benefits 0.9 Customer to reflect investment effects and cost benefits in managerial benefits decision making. 60.7 54.5 Environmental costs are calculated in accordance with the 54.3 55.2 54.7 Ministry of the Environment’s Environmental Accounting 1.2 34.5 Guidelines 2005. As for environmental benefits, Toshiba 24.4 43.1 33.1 25.9 Assumed Group’s environmental accounting assumes four basic con- benefits

cepts: competitive advantages, prevention of potential envi- Expansion of ECPs

ronmental risks, internal benefits and external benefits. We 9.7 15.4 11.9 classify benefits into four categories based on combinations 9.5 Actual 9.2 benefits of these concepts to develop a comprehensive approach 7.1 2008 2009 -122.9 2011 2012 (FY) to environmental accounting: customer benefits due to

reduced power consumption of products, actual economic 2010 benefits resulting from reductions in the amount of waste and energy consumed, assumed economic benefits estimat-

ed to result from reductions in air pollutant emissions, ben- Manufacturing High-e ciency efits resulting from preventing potential risks. These catego- ● Cost benefits of environmental management measures ries provide useful indices for environmental management. The figure below shows the changes in the cost benefits of measures for climate change mitigation and waste disposal ■ Environmental■ 環境経営ツールとしての環境会計 accounting as a tool for environmental over the past three years. We compared the costs incurred management in taking measures to mitigate climate change and dispose External benefits waste against the total amount of reductions in payments Assumed economic Customer benefits related to energy consumption and waste disposal com- benefits Power consumption, etc. BOD, F, NOx and SOx pared to the previous year as well as sales of valuables

Environmental Environmental Competitive during the current year. In the table, costs are expressed as risks management advantages business area costs and benefits as actual benefits. Compliance and Management Risk prevention benefits Actual economic In FY2012, the costs incurred taking measures to mitigate Environmental structures and benefits climate change were more than the reductions in payments measures for legal compliance CO2, waste and water related to energy consumption. On the other hand, mea- Internal benefits sures to dispose waste brought larger benefits than the costs incurred taking them. ● Environmental costs and benefits The major issue to be addressed going forward is how to Total environmental costs decreased by 21% from the previ- overcome two conflicting problems: an increase in emis- ous year to 43 billion yen. Of the different business sections, sions of environmental pollutants as a result of business ex- the electronic device section accounted for the largest per- pansion and the need for cost reductions. Toshiba Group will centage of total environmental costs, followed by the home also analyze the cost benefits and other financial aspects of appliance section. environmental management measures in more detail. Total investments decreased by 31% from the previous year

to 6.5 billion yen, with environmental investments account- Reputation ing for 2.7% of total investments. ■ Cost benefits of measures for climate change mitigation The total amount of environmental benefits was 83.2 billion and waste disposal yen (almost the same level as the previous year). 9.2 billion Costs for waste measures Reductions in payments for yen for actual benefits, 33.1 billion yen for assumed benefits, Costs for measures to waste and sales of valuables mitigate climate change 40.8 billion yen for customer benefits, and 0.1 billion yen for 10.2 risk prevention benefits. Reductions in energy costs (billion yen) Advancing Stage to the Next ■ Breakdown of environmental costs by business segment 6.3 7.9 (FY2012) 4.6 Digital Other 4.1 product 7% 3.8 4%

2.8 3.0 Social 2.1 1.9 infrastructure Environmental costs: 1.5 1.1 16% 43.1 Electronic device 2010 2011 2012 (FY) billion yen 45%

Home appliance 29%

59 Toshiba Group Environmental Report 2013 chapter4 chapter4 Compliance and Management

■ Environmental costs (FY2012) Unit: million yen ■ Environmental benefits (FY2012)

Category Description Investment Costs Benefits measured Vision and Strategies Category Reductions in environmental impacts in monetary values Reduction in environmental (millions of yen) Business area costs impact 4,507 19,474 Energy 237,108 (GJ) 1,105 Upstream/down- Green procurement, recycling, stream costs etc. 1,494 1,155 Environmental education, EMS Actual benefits Waste 10,733 (t) 7,885 Administration costs maintenance, tree planting on 109 4,787 factory grounds, etc. 901,000 Water (m3) 223 Development of environmental- R&D costs ly conscious products, etc. 379 15,968 Assumed Reduction in the amount benefits of chemicals discharged 690 (t) 33,142 Support for local environmental Public relations costs 11 83 activities, donations, etc. Customer Reductions of CO2 3.69 million 40,820 benefits emissions during use (t-CO2) Environmental dam- Restoration of polluted soil, etc. 23 1,597 age restoration costs Risk prevention 77 benefits Expansion of ECPs Total 6,523 43,064 Total 83,175 Total capital 239.6 billion yen Reductions in environmental impacts for actual and assumed benefits indicate investment differences between FY2011 and FY2012. Total R&D costs 305.9 billion yen Reductions in environmental impacts for customer benefits are based on comparisons with the benchmark year (in principle FY2000) and FY2012. ● Internalization of external diseconomies Toshiba’s current environmental accounting is basically an ini- ● New attempt: Contribution to the protection of natural tiative aimed at minimizing external diseconomies, in which capital data on costs required for environmental conservation activ- In June 2012, UNEP FI* developed the Natural Capital Dec- Manufacturing High-e ciency ities is collected to analyze effects on investments. However, laration (NCD). NCD requires signatories to evaluate natural environmental impacts due to business activities cannot be capital, which creates trillions of dollars of value annually, in reduced to zero. For this reason, we are considering visualiz- the same manner as social and financial capital. ing external diseconomies by assessing final environmental Therefore, Toshiba Group recalculated those of its current impacts as monetary values and to recognize (or internalize) environmental costs that are highly relevant to the public them as required costs for environmental renewal. interest as costs contributing to the protection of natural ■ Perception of external diseconomies capital. The recalculation results indicated that Toshiba Reduction of Group spent 21 billion yen on protection of natural capital. BAU* environmental impacts through Minimization of external In the future, the Group will grasp costs contributing to the or year- environmental diseconomies on-year investments protection of natural capital and analyze the degree of our Compliance and Management contribution to environmental causes. Environ- Calculation of environmental Internalization of * UNEP FI: U.N. Environmental Programme Finance Initiative mental impacts (physical quantity) as external diseconomies impacts monetary values *BAU (Business as Usual): Best obtainable value for environmental impacts ■ Natural capital The figure below shows a conversion of environmental impacts caused by industrial waste discharged by Toshiba ● Ecosystem services provided by the earth’s natural as- Group over the past three years into monetary values. The sets (e.g., soil, air, water, and flora and fauna) amount of external diseconomies for FY2012 was computed to be 14.8 billion yen. At the same time, the costs required ● Suppliers of mineral resources (ore) and fossil fuels for conservation of biodiversity, afforestation of production sites, and other initiatives having environmentally positive effects totaled 0.78 billion yen*. ■ Costs that contribute to the protection of natural capital Comparing these costs, we are considering a system for off- (public interest costs) Reputation setting or reducing external diseconomies as well as looking Unit: million yen Public inter- at the changes over the three-year period, which indicate Cost Costs est costs Remarks that the reduction rate shifts from 6.1% to 5.2%, and then to Within business and Costs for measures to cope with 5.3%. In the future, we will continue to further increase the production 19,474 18,621 climate change and environmen- sophistication of our analysis. sites tal pollution * This amount is the sum of the public costs required for afforestation of production sites, Upstream and Excluded because these are cleaning campaigns, donations, natural restoration, etc. as listed in the table to the right. downstream 1,155 0 processes necessary costs Advancing Stage to the Next ■ Management Costs for afforestation of produc- Calculation of external diseconomies activities 4,787 701 tion sites, etc. Excluded because these are busi- Expenditure with positive R&D 15,968 0 ness-related costs effects on the environment Visualize external diseconomies and Activities to 15.8 Local cleaning campaigns, dona- 15.1 14.8 recognize them as benefit soci- 83 83 tions, etc. (billion required costs for ety External yen) environmental renewal Responses to diseconomy 0.92 0.82 0.78 environmental 1,597 1,590 Natural restoration costs Internalization of damage 2009 2010 2011 (FY) external diseconomies * Targeted environmental impacts: Total 43,064 20,995 • Total GHGs (CO2, PFC, SF6, HFC, other) ● Recalculation of those current environmental accounting expenditure items that are • Emissions to atmosphere (soot, NOx, SOx) • Emissions to hydrosphere (BOD, COD, suspended matter, total nitrogen, other) highly relevant to the public interest as costs contributing to the protection of natural • Final waste disposal amount (scrap metal, cinders, sludge, waste paper, waste acid, waste capital plastics, other) ● These costs cover measures to cope with climate change, management of green zones, etc. • Chemical substances (covered by PRTR) ● They do not cover items that contribute to Toshiba’s own business activities (e.g., R&D * The Life-cycle Impact assessment Method based on Endpoint modeling (LIME) was used costs). for conversion into monetary values. For more details on LIME, see page 37.

Toshiba Group Environmental Report 2013 60 chapter5 Chapter 5

Reputation Vision and Strategies

We will contribute to the creation of a better global environment through dialogues and

mutual understanding with our stakeholders. Expansion of ECPs

INDEX Promoting environmental communication to connect people Summary of activities in FY2012 Toshiba Group will establish stronger relationships of trust

Toshiba Group Global Environmental Action P62 by actively disclosing information and holding stakeholder Manufacturing High-e ciency dialogues. At the same time, some 200,000 Toshiba Group Carried out a light-down campaign at employees will expand environmental communication to business and production sites and at employees’ homes around the world 363 sites participated connect people by carrying out environmental activities globally while keeping close ties with local communities. Opening of the TOSHIBA BATON to the public Thus we will contribute to the creation of a better global en- No. of photos posted: 409 vironment.

Reputation strategy Communication with Stakeholders P63 Contributing to the creation of a better global environment through a communication network that connects people Compliance and Management No. of sites disclosing reports 116 sites

Provision of No. of suppliers participating Oﬀering opinions on environmental environment-related information on Environmental communication 22,190 policy and products and Involvement in social contribution in brie ngs extending services activities cooperation, etc. (cumulative) Customers Employees National and local governments Recognized as an environmentally advanced company NPOs and NGOs Suppliers Shareholders and Local Evaluation by External Parties P68 community ●Continuous dialogues investors ●Collaboration (e.g., ●Sharing of social contribution information on green First place activities) procurement 16th Nikkei Environmental Management ●Providing appropriate ●Disclosure of environmental environmental information Level Survey information in a timely on production sites manner ●Dialogues, factory visits, etc. 16th Environmental Communication Minister of the Fostering relationships Reputation Awards Environment’s Award of trust Toshiba Group

■ Major initiatives with stakeholders

Measures Major activities - Publication of the Environmental Report

- Disclosure of information on the environmental website Advancing Stage to the Next Communicating - Emphasizing environmental initiatives at exhibitions information to cus- - Placement of environmental advertisements tomers and local - Environmental labeling for products communities - Disclosure of site reports - Publication of the Annual and CSR Reports - Opening the employee participatory website to the public - Implementation of Global Environmental Action - Holding of stakeholder dialogues Facilitation of dia- - Collaboration in environmental programs logues and estab- - Initiatives to conserve biodiversity lishment of closer - Participation in external organizations and offering of opinions on cooperation industry standards - Holding of green procurement briefings - Environmental activities in local communities

61 Toshiba Group Environmental Report 2013 chapter5 Chapter 5 Launching of “Toshiba Group Global Environmental Action”

On the day of the campaign, the Toshiba head office (Toshi- Implementing a global light-down campaign ba Building in Tokyo’s Hamamatsucho) also turned off all Vision and Strategies Reputation Toshiba Group is working to expand environmental commu- its lights, the first attempt of its kind. All lights on all floors nication to connect people around the world, one of the ac- of the 39-story building were simultaneously turned off. tivity items of the Fifth Environmental Action Plan. We have During the run-up to the light-down campaign, an outdoor designated June 5, World Environment Day, as the day for countdown concert was held as a side event to raise em- We will contribute to the creation of a better Toshiba Group Global Environmental Action, and all 200,000 ployees’ environmental awareness. More information on Toshiba Group employees in various parts of the world take how the campaign was implemented is available on the environmental actions together on this day. special website for Global Environmental Action. global environment through dialogues and On June 5, 2013, the first day of this initiative, we carried out In FY2014 and thereafter, we will continue to promote a global light-down campaign under the theme of energy Global Environmental Action under new themes in order to conservation. For one hour from 7:30 p.m. to 8:30 p.m., we develop a keener environmental awareness among all em- Expansion of ECPs mutual understanding with our stakeholders. shut off the lights at business and production sites as well as ployees at the global level and contribute to environmental employees’ homes. A total of 363 sites in Japan and abroad initiatives in the local communities where we operate. participated in this initiative, saving about 8,500 kWh of electricity. High-e ciency Manufacturing High-e ciency

Special website for Global Environmental Action All lights turned off in the head office building (before -> after) http://www.toshiba.co.jp/env/en/global_env_action/index_j.htm

■ Scenes from the light-down campaign in various places Compliance and Management

Toshiba (Australia) Pty., Ltd. Toshiba Semiconductor Hangzhi Machinery & Scenes from the concert at the head office (Thailand) Co., Ltd. Electronics Co., Ltd. No. of sites that participated in the global light-down campaign Japan: 317 Overseas: 46 Canada, Poland, Australia, Thailand, the Philippines, India, Singapore, South Korea, China, etc. Total: 363 Himeji Operations of Toshiba Elevator Candle night at employees’ homes and Building Systems Corporation Reputation Presenting employees’ environmental activities worldwide on TOSHIBA BATON, an employee participatory website

We have launched TOSHIBA BATON, a website that facilitates sharing of photographs of environmental activities posted by Toshiba Group employees around the world. The website was opened in FY2012 to introduce Toshiba employees’ environmental initiatives to the public and raise employees’ level of environmental awareness. Employees post articles

on subjects close to them, such as plants and animals, and also introduce Advancing Stage to the Next environmental activities at their workplaces. As the number of posts and A runner runs on the world atlas viewers grows, the distance run by the runner displayed on the website increases. When the runner reaches the goal, a donation to an environmental cause will be made. After carrying out the FY2013 Global Environmental Action initiative, many employees from around the world posted articles on how the light- down campaign was implemented at their business and production sites as well as homes to share information on the initiative globally. TOSHIBA BATON will continue introducing diverse environmental activities, including Global Environmental Action, taking place in various countries of the TOSHIBA BATON Examples of articles about world. http://toshibaton.com/ Global Environmental Action

Toshiba Group Environmental Report 2013 62 chapter5 Reputation chapter5 Advancing with Customers

Environmental Report and website Advertisements Vision and Strategies Since the publication of the first Toshiba Group deploys corporate advertisements under our volume of its environmental report “Toshiba eco-style” global brand for environmental manage- in 1998, Toshiba Group has dis- ment to improve its environmental initiative image and cor- closed its environmental informa- porate brand image. tion every year. The Toshiba Group During FY2012 to FY2013, we have communicated what Environmental Report 2012, which Toshiba considers to be “eco-style” through two series of was published last year, received advertisements: “eco-style for society,” which takes up com- the Environmental Reporting munity development through the introduction of smart Grand Prize (Minister of the Envi- communities, and “eco-style for lifestyles,” which focuses on ronment’s Award) in the 16th Envi- Toshiba Group conserving energy in the home without sacrificing comfort. Environmental Report 2012 Expansion of ECPs ronmental Communication Awards (Japanese, English, and Chinese versions) hosted by the Ministry of the Envi- ronment. In addition to the content found in the report, Toshiba’s environmental website discloses more detailed information in a timely manner. Videos of exhibitions and events are also posted on the website. The Factor T website, which was launched in 2013, explains Factor T, a new indicator of afflu-

“eco-style for society” “declaration version” “eco-style for society” Manufacturing High-e ciency ence. (newspaper advertisement) “Energy solutions” version (TV commercial)

Toshiba Group environment website Factor T website “eco-style for society” “eco-style for lifestyles” http://www.toshiba.co.jp/env/en http://www.toshiba.co.jp/env/jp/factor_t/ “Building solutions” version (TV commercial) “Home solutions” version (TV commercial) index_j.htm (in Japanese only) We have also run TV commercials and newspaper advertise- Compliance and Management ments to announce that we delivered LED lighting to the Lou- Exhibitions vre Museum and explain that LED lamps have a long lifespan, We take an active part in presenting our products and tech- about ten years. nologies at various exhibitions around the world in order to have our environmental initiatives understood by as many people as possible. ● Major exhibitions U.N. Conference on Sustainable Jun. 2012 Development (Rio+20) Brazil

Sep. 2012 IFA 2012 Germany LED lighting for the Louvre Museum (newspaper advertisement) Dec. 2012 Eco-Products 2012 Japan

Jan. 2013 2013 International CES United States Reputation Toshiba head Feb. 2013 Toshiba Group Environmental Exhibition office, Japan Mar. 2013 Eco-Products International Fair Singapore

Apr. 2013 WETEX2013 UAE LED lighting for the Louvre Museum LED ceiling lights for “LED 10 Years Live” (TV commercial) (TV commercial)

In addition, a special website to introduce the behind- the-scenes stories of the development of our FY2011 and Advancing Stage to the Next FY2012 Excellent ECPs has been opened, a tie-up advertising project with Nikkei Business Publications, Inc.

Eco-Products 2012 (Japan) Toshiba Group Environmental Exhibition (Japan)

ecomom special website Eco-Products International Fair (Singapore) WETEX2013 (UAE) http://special.nikkeibp.co.jp/as/201301/ecp/ (in Japanese only)

63 Toshiba Group Environmental Report 2013 chapter5 Reputation chapter5 Partnerships

Donation of LED lighting and a photovoltaic power Involvement in environmental campaigns

generation system to Chusonji Temple’s Golden Hall Vision and Strategies As part of efforts to aid recovery Toshiba Group compa- from the Great East Japan Earth- nies in various countries quake, Toshiba Group donated around the world again LED lighting equipment and a participated in Earth photovoltaic power generation Hour 2013, an event system to Chusonji Temple, one of hosted by the World the central assets constituting Iwa- Wide Fund for Nature te Prefecture’s Hiraizumi, a World that calls for people to

Heritage site. The use of photograph is authorized make a global effort The LED lighting equipment by Chusonji to turn off lights at the Expansion of ECPs installed in the temple’s Shinfukudo Hall reduces power con- same time. On March Toshiba Vision in New York (Earth Hour 2013) sumption by about 41% compared to the previous level. It also 23, the day of the event, (Before and after lights out) creates a space that enhances the artistic and spiritual quality Toshiba put out the of the Golden Hall and the statues of the Buddha it houses. lights for signboards Toshiba Group, in agreement with the philosophy of Hiraizu- and other facilities in mi, which strives to coexist with nature, also installed a 5-kW major cities worldwide, Shanghai (Earth Hour 2013) photovoltaic power generation system on the roof of a shop including Sendai, Yo- (Before and after lights out) attached to the treasure museum. This system enables the tem- kohama, Osaka, New York, Paris, London, Beijing, Shanghai, Hong High-e ciency Manufacturing High-e ciency ple to generate more electricity than it Kong, Chongqing, Bangkok, Jakarta, Hanoi, Ho Chi Minh, Manila, consumes in order to illuminate the Gold- Dubai, and Jeddah. In addition, the Group called on its employees en Hall without spoiling the view. to conserve electricity. Toshiba has participated in this event ev- As a token of appreciation for these dona- ery year since officially announcing participation in Japan in 2010. Photovoltaic power generation system tions, Chusonji Temple presented Toshiba The Group also joined the Ministry of the Environment’s Light- The use of photograph is authorized by Chusonji with some roots of its precious ancient Down 2012 campaign, in which all participants turned off their lotuses, which are now being grown at lights at the same time on June 21 and July 7. On the days of the Toshiba’s Yokohama Complex. event, Toshiba turned off its signboards in Osaka and other major Toshiba won the 31st Japan Lighting cities as well as the lights in its offices and other facilities, thus Award (2013) for the Chusonji Temple conserving about 12,000 kWh of electricity. Compliance and Management

Ancient lotus grown in the lighting improvement project. Yokohama Complex

Installation of LED lights in the Louvre Museum Participation in Earth Day NY 2013 Regarding the lighting improvement project Toshiba Group supported Earth Day NY 2013, an environ- Toshiba began implementing with France’s Lou- mental event held by “Earth Day New York”, an NPO, in New vre Museum in 2010, the company completed York City from April 20 to 22, 2013 in order to call people’s replacement of lights with LED lamps for major attention to environmental issues. At Grand Central Termi- paintings in the galleries during June 2013. nal, one of the event’s main venues, Toshiba set up a booth For the lighting system for Leonardo da Vinci’s to encourage visitors to think about environmental issues Mona Lisa, Toshiba employed a lighting method while enjoying attractions that enabled them to experience which allows all shades of color in the master- Mona Lisa the world of smart communities, the environmentally con- piece to be faithfully reproduced. In order to scious products on display, children’s presentations of Reputation prevent the painting from appearing brownish, the lighting sys- eco-inventions, and so forth. During the three-day period, tem also minimizes the amount of ultraviolet rays and blue light. about 2,700 people visited the booth. At the same time, The ceiling lights for the Red Room that houses Jacques-Louis Toshiba ran photographs of visitors taken at the event site David’s The Consecration of the Emperor Napoleon I and the Cor- on the Toshiba Vision screen in Times Square in order to in- onation of Empress Josephine uses a new control power source, troduce how visitors enjoyed the event. which maintains the lighting for the painting at a certain level Toshiba booth

so that visitors can appreciate the work at a fixed level of illumi- Advancing Stage to the Next in Grand Central nation. This has allowed power consumption to be reduced by Terminal about 60%. After signing a partnership agreement in 2010, the lights for the Pyramid, Pyramidion, and the Colbert Pavilion were replaced with LED lights in December 2011 and the same was done for the Napoleon Court in May 2012. Through these efforts, the Louvre has reduced power consumption by about 73%. Additionally, plans call for the lighting for the square Carre Court and the Napoleon Introduction of Earth Day NY 2013 on Visitors’ photo on the Hall to be replaced by LED lights Toshiba America Inc.’s Toshiba Vision screen official Facebook page The Red Room during FY2014.

Toshiba Group Environmental Report 2013 64 chapter5 Reputation chapter5 Advancing with Stakeholders NPOs and NGOs Local communities Vision and Strategies Holding stakeholder dialogues periodically Publication of site reports Toshiba Group periodically holds stakeholder dialogues in In order to present an overview of order to make effective use of stakeholders’ opinions and re- business activities at our production quests for social and environmental management. In the sites around the world and to have April 2013 dialogue, the head of Toshiba CSR Office talked our environmental initiatives under- with Mr. Jeremy Prepscius, BSR regional vice president in stood by local community residents, Asia, a U.S. CSR promotion organization. He offered valuable we disclose environmental informa- opinions on the future direction of CSR management at tion for each of our production sites. Digest report of a production site Toshiba, including how Toshiba should respond to global is- We summarized major environmen-

sues while keeping the company’s impact on society in tal initiatives in FY2012 and presented digest reports on Expansion of ECPs mind. about 116 sites on our websites. At the same time, some of To date, we have held dialogues with many stakeholders, our production sites publish their own including those overseas, and will continue doing so in the reports and present their information on future in order to reflect their results in our future activities. the website. Copies of these reports are ● Stakeholder dialogue with a U.S. CSR promotion organization also distributed to visitors to our factories. Date: April 2013 Venue: Toshiba head office

Theme: Manufacturing High-e ciency ● Presenting opportunities Environmental report of a production site through stakeholder dialogues Site reports: http://www.toshiba.co.jp/env/en/company/region.htm ● Global CSR issues Cleaning campaign along nearby rivers In June 2013, in order to contrib- 2012 Toshiba Youth Conference for a ute to the conservation of pre- Sustainable Future cious water resources and raise In August 2012, Toshiba Group hosted the Toshiba Youth employees’ environmental aware- Garbage collected from the rivers Conference for a Sustainable Future (sponsored by the ness, Toshiba Group companies in Singapore worked with lo- Compliance and Management Toshiba International Foundation and conducted by Be- cal NPOs to clean and patrol the Singapore and Kallang Riv- Good Cafe, an NPO) in which high school teachers and stu- ers and their environs. On the day of cleaning, 50 employees dents from Japan, the United States, Thailand, and Poland gathered and collected about 50 kg of garbage along the gathered to discuss environmental issues. The 2012 Confer- rivers. ence, which was the fifth in the series, was held in Thailand, and 16 high school students and 9 teachers from the previously mentioned countries participated in the event. Under the theme “Achieving harmony with the Earth,” they participated in a varied program while enjoying camp life. The program included exchanging opinions, visiting environmental facilities, experiencing rice cultivation, interviewing environ- Employees who participated in the campaign mental experts, and editing electronic newspapers. Toshiba Group will continue to support younger students who think Reputation about environmental issues from a global viewpoint and act Green curtain installation accordingly. Toshiba Ome Complex has installed a green curtain of luffas on its building to minimize building temperature increases due to the strong summer sunlight. The Complex uses this green curtain to effectively carry out exchange programs with local residents. Such programs include visits by local elementary school students to environmental facilities as part Advancing Stage to the Next of their summer events, harvesting of luffas, and distribution of sponges made from luffas. The green curtain received the top award in the category for organizations in Ome City’s Group photograph of participants Practice of rice cultivation Green Curtain Contest.

Presentation by high school students Editing of electronic newspapers on what they learned (http://act-eco.net/aej/) Experience of harvesting luffas Green curtain of luffas

65 Toshiba Group Environmental Report 2013 chapter5 Reputation chapter5

Shareholders and investors External organizations and administrative agencies

Involvement in international Vision and Strategies Publication of the Annual and CSR Reports standardization initiatives Toshiba Group discloses financial information in the Annual In order to contribute to the development of global frame- Report and information on CSR (social and environmental) works to realize a sustainable society, Toshiba Group actively initiatives in the CSR Report. participates in and cooperates with international institu- The information in these reports is also disclosed on the website. tions, administrative agencies, and industry organizations ● Annual Report/Investor relations website such as the International Organization for Standardization (ISO), International Electrotechnical Commission (IEC), World Business Council for Sustainable Development (WBCSD), Electronic Industry Citizenship Coalition (EICC), and United

Nations Global Compact. Expansion of ECPs Toward the realization of a sustainable society, in 2010 Toshiba Chairman Atsutoshi Nishida served as a member of the Executive Committee of WBCSD, an organization led by http://www.toshiba.co.jp/about/ir/en/ http://www.toshiba.co.jp/about/ir/ the CEOs of some 200 global corporations; he has served as finance/ar/index.htm index.htm one of its Vice Chairman since 2012. (For details, visit http:// www.toshiba.co.jp/csr/en/policy/organization.htm#wbcsd) ● CSR Report/CSR website In addition, two Toshiba experts have joined ISO/TC207/

SC5 on life cycle assessment (LCA) to develop international Manufacturing High-e ciency standards for water footprints (for details, see page 34), LCA methods for organizations, and so forth. They participated in the plenary meeting of ISO/TC207 held in Botswana in June 2013 as representatives of Japan. As shown by their activities, they are working to establish practical LCA methods http://www.toshiba.co.jp/csr/en/ http://www.toshiba.co.jp/csr/en by making the most of the knowledge they have acquired report/download.htm through the introduction of LCA at Toshiba for 20 years. Furthermore, as an advisory member, another Toshiba ex- Suppliers pert has participated in IEC/TC111/WG3 on the product’s

Sharing information with suppliers mainly level of environmental consciousness since the working Compliance and Management through briefings group was formed in 2005. As a project leader, the person- Toshiba Group has established the Green Procurement nel is working to develop international standards for test Guidelines to procure products, parts, and materials with less methods for specified chemical substances that comply environmental impacts from suppliers that actively promote with the RoHS directive (For details, see page 35). At a meet- environmental initiatives. ing in Italy in June 2013, for instance, the personnel played The Group has also produced copies of “Toshiba Group an active role in establishing test methods to enhance over- Procurement Policy” and “Supplier Expectations” (which all industry competitiveness mainly by making the most of summarize the Group’s procurement policy and CSR/envi- the knowledge of RoHS analysis technology the personnel ronmental requirements), distributed these to suppliers all acquired at Toshiba. over the world, and ensured that suppliers are fully aware of Cooperation between production sites and ad- the requirements. In addition, meetings are held to explain ministrative agencies the Green Procurement Guidelines to suppliers and surveys Since 2009, Toshiba Yokkaichi Operations has given environ- Reputation of suppliers’ procurement policies (including self-checks) are mental classes by visiting nearby elementary schools using carried out. In FY2012, Toshiba’s procurement managers visit- textbooks developed jointly with the Yokkaichi city and Mie ed a total of about 850 suppliers to carry out on-site surveys. prefectural governments. In FY2012, a total of 190 students In the event that any problems with suppliers are found, the from three elementary schools participated in these classes Group provides guidance and support; depending on the and learned about topics such as how to save energy at details of the case, actions are taken, including suspension of home. business relations.

In addition, Yokkaichi Operations actively coordinated with Advancing Stage to the Next Toshiba International Procurement Hong Kong Ltd. received the Yokkaichi municipal government to set up meetings for the gold award in the “Export and Import Trade” sector at the exchanging energy-saving technologies among neighbor- 2012 Hong Kong Awards for Environmental Excellence, which ing companies. In November 2012, the first meeting was are sponsored by the Hong Kong Productivity Council, for its held with the participation of seven companies. continuous environmental and CSR education activities for suppliers implemented through periodic and on-site surveys. FY2012 textbook ● Number of suppliers who participated in environmental briefings and number of suppliers surveyed (Toshiba Group) Participation in briefings: 22,190 companies No. of suppliers surveyed: 23,309 companies No. of on-site surveys: 5,080 companies Cumulative numbers for Toshiba Group during the six years from FY2007 to FY2012 Giving a class by visiting an elementary school

Toshiba Group Environmental Report 2013 66 chapter5 Reputation chapter5 Third-Party Evaluation In order to improve the reliability of the environmental performance data presented in this report, Toshiba *1

Group requested Bureau Veritas Japan Co., Ltd. to conduct a third-party verification of the data. Global data Vision and Strategies regarding the results for FY2012 was reviewed to check the processes of the collection, aggregation and internal verification of data and the accuracy of aggregated data. A certification organization that conducts inspections, reviews and certification regarding ships, buildings, health, safety, the environment, systems and consumer products (http://certification.bureauveritas.com) Reference View

Bureau Veritas Japan (Bureau Veritas) has conducted Environmental Performance Data verification for the “Toshiba Group Environmental Report 2013.” The following conclusions are made as a result of the verification.

1. Positive Findings Expansion of ECPs ● A new function was added to the Environmental Management Information System (EMIS) enabling operators to input comments to it. As a result, big leaps compared to previous year would be accounted for with comments for the reason, and are easily detectible as an irregular value. Manufacturing High-e ciency ● At the Head Quarters’ site visit, some data was found to be missing in the total aggregation; However the calculation function was effectively working and found out few errors doesn’t affect to overall total GHG emissions. Compliance and Management Improvement against the last year’s themes ● Fuel consumption of vehicles owned by outsourced transportation contractors, which does not owe product shipment, has been mistakenly added at a visited site. It supposed that vehicle fuel is managed at different sections apart from energy management section (for example, general affairs section) in the role. Reputation

Opportunities for Improvement

● At one visited site, electricity consumption of contract companies had been included in the overall data reporting. The Advancing Stage to the Next sub-meter of contract companies was not managed enough. The sub-meter for this source should be properly and accurately operated under appropriate management to ensure data reliability. ● It was found that some calorific values and CO2 emission coefficients (except Japan) designated in the internal Toshiba rule were not applied. It is understood that the reference update had been unacknowledged and as a result no such amendments were made to keep this calculation and conversion process up to date. The Head Quarters should improve that they can ensure to check the calorific values and coefficients periodically. ● The calculation sheet for transportation CO2 emissions per destination had been revised. The updated calorific value and CO2 emission coefficients were also incorporated. However, one site was seen to be using outdated values and the Head Quarters should ensure that all sites are notified to adopt the updated values.

67 Toshiba Group Environmental Report 2013 chapter5 Reputation chapter5 Evaluation by External Parties (FY2012* result)

* The list below includes recently received awards.

Award title Award-winning item(s) Evaluated entity Evaluation of products and technologies Vision and Strategies 9th Eco-Products Awards, Eco Product Category, Eco Products Grand Prize Promotion Council’s Spe- X-ray diagnostic CT systems using adaptive iterative dose-reduction 3D (AIDR 3D) technol- Toshiba Medical Systems Corporation cial Award (Excellence Award) ogy (Alexion™ TSX-032A and 9 other models) 9th Eco-Products Awards, Eco Product Category, Eco Products Grand Prize Promotion Council’s Spe- Smart DC Office, a system for building direct-current distribution networks in buildings cial Award with photovoltaic power generation systems and storage batteries Toshiba Corp. (shared by Taisei Corp.) (Excellence Award for Energy-saving Service) 9th Eco-Products Awards, Eco Service Category, President of the Eco Products Grand Prize Promotion Next generation ECHONET Lite-certified cloud home energy management system (HEMS) Toshiba Lighting & Technology Corp. Council’s Award (Excellence Award) 2012 Grand Prize for Excellence in Energy Efficiency and Conservation, Product and Business Model Category, Chairman's Prize, Eco-Efficiency Cat- Drum-type washer dryer Toshiba Home Appliances Corporation egory, the Energy Conservation Center Japan ZABOON TW-Z9500, TW-Z8500, and TW-Q900 Toshiba Corp. Corporate Research & Development “Cho” Monozukuri Innovative Parts and Components Award 2012 eco-chips Center 9th LCA Society of Japan Awards, Honorable Award Carrying out of water footprint initiatives at Toshiba Group Toshiba Corp.

9th LCA Society of Japan Awards, Honorable Award Promotion of environmental management in the medical equipment field utilizing LCA Toshiba Medical Systems Corporation Expansion of ECPs FY2012 Minister of Education, Culture, Sports, Science and Technology’s Toshiba Carrier Corporation Award for Science and Technology Development of a variable-cylinder twin rotary compressor for home air conditioning sys- Ken Tominaga, Shogo Shida, Koji Hirano, and Science and Technology Award (Development Category) tems Shoichiro Kitaichi Toshiba Carrier Corporation FY2012 Japan Society of Mechanical Engineers Award (Technology) Development of a high-efficiency, variable-cylinder rotary compressor Takuya Hirayama, Isao Kawabe, Koji Hirano, and Hitoshi Konemura 2011 Excellent Paper Award from the Japan Environmental Management Yoshinori Kobayashi, Corporate Environmental Association for the “Environmental Management” industry bulletin “Making the effects of business activities on ecosystems visible—Toshiba Group initiatives” Management Division Evaluation of business activities Toshiba Corp. Semiconductor & Storage Products Awarding of Reduce, Reuse, Recycle Promotion Manager (Minister Prize of 3R activity entirely participated by employees and communication with neighboring resi- Company Economic, Trade and Industry) dents. Oita Operations

2012 Reduce, Reuse, Recycle Promotion Association Chairman’s Award Manufacture of resource-recycling NAND flash drives Toshiba Corp., Yokkaichi Operations Manufacturing High-e ciency 2012 Reduce, Reuse, Recycle Promotion Association Chairman’s Award Improvement of the recycling rate to achieve zero emissions Toshiba Corp. Ome Complex Awarding of Excellent Energy Conservation Factory & Building recognized by Director-General, Chubu Bureau of Economy, Trade and Industry Promotion of energy conservation Toshiba Corp., Yokkaichi Operations Toshiba Corp. Semiconductor & Storage Products Awarding of Excellent Energy Conservation Promotion Manager recog- Planning and implementing energy-saving measures and promoting energy-saving-tech- Company nized by Director-General, Kyushu Bureau of Economy, Trade and Industry nologies across departments by communicating inside and outside the factory. Hiroyuki Shimokawa Awarding of Excellent Energy Conservation Promotion Manager recog- Two employees from Yokkaichi Operations, Toshi- nized by Director-General of Energy Conservation Center, Japan Tokai Promotion of energy conservation ba Corp. Branch Haruyuki Ando and Toshiya Hattori Encouragement Award (Contribution to Energy Conservation), Kawasaki Contribution to mitigation of climate change by reducing power consumption at a pro- City’s First Smart Lifestyle Grand Prize duction site Komukai Complex, Toshiba Corp. Chairman’s Award of Iwate Prefecture Environment Preservation Liaison Council Excellent Factory Award for Environment Preservation Iwate Toshiba Electronics Co., Ltd.

FY2012 Fukushima Protocol Award (Office Category) Contribution to mitigation of climate change by reducing in CO2 emissions at business sites Toshiba Alpine Automotive Technology Corp.

Top Award in the FY2012 Ome City’s Green Curtain Contest in the category Green curtains for building windows Toshiba Corp. Ome Complex for organizations Compliance and Management Silver Prize in International Category, Green Apple Award Envioronmental consideration at 5th manufacturing building Toshiba Corp., Yokkaichi Operations The Environmental Leadership Program for Competitiveness Overall environmental activities Landis + Gyr AG, Reynosa The Program for Sustainable Development - State of Tamaulipas, Mexico Overall environmental activities Landis + Gyr AG, Reynosa Mayor’s Proud Partner Award, Houston, Texas Overall environmental activities Toshiba International Corp. Don Emilio Abello Outstanding Energy Efficiency Award Energy efficiency as a whole - it included technology and systems Toshiba Information Equipment (Philippines), Inc. Acquisition of Kunshan City’s corporate environmental green level chosen as one of Kunshan City’s top ten foreign companies investing in green de- Environmental conservation activities Harison Toshiba Lighting (Kunshan) Co., Ltd. velopment Corporate Social Responsibility Award 2012 CSR activities and their results from 2010 to 2012 Toshiba Vietnam Home Appliances Co., Ltd. 2012 Asia’s Best Employer Brand Awards Best management practices that contributed to the environment Toshiba Thailand Co., Ltd. White Ocean Strategy Award 2012 Award for the continuous contribution to Environment and Community Toshiba Thailand Co., Ltd. Green Pavilion Award Attitude toward environmental stewardship and eco-products Toshiba Thailand Co., Ltd. Chosen as one of the companies practicing advanced management of hazardous waste in the Hangzhou Economic and Technological Develop- Environmental protection activities to manage hazardous waste Toshiba Information Equipment (Hangzhou) Co., ment Zone in FY2012 Ltd. The Green Enterprise Certificate awarded by the Zhejiang Provincial Gov- Environmental protection activities as a company continually striving for cleaner production Toshiba Information Equipment (Hangzhou) Co., Reputation ernment processes Ltd. Green business award Production and business activities related to environmental protection and waste disposal Toshiba Vietnam Home Appliances Co., Ltd. Chosen by Dalian City as a company practicing advanced disposal of solid waste Overall management of solid waste Toshiba Dalian Co., Ltd. (China) 2012 Hong Kong Awards for Environmental Excellence sponsored by the Hong Kong Productivity Council Continuous environmental and CSR education for suppliers, carried out mainly through Toshiba International Procurement Hong Kong Ltd. Gold award in the “Export and Import Trades” sector periodic and on-site surveys Evaluation of communication programs National Federation of Industrial Waste Management Associations’ “CSR2 Project” ISO26000 (social responsibility standards) National Youth Division Council President’s award in the category of compliance Publication of social and environmental reports in line with the seven core subjects Term Corp. FY2011 Best Report Award, Dalian City Sustainable Development Report Advancing Stage to the Next (Environmental Report) Publication of information on environmental conservation activities and their results Toshiba Dalian Co., Ltd. (China) Chosen by Dalian City as an advanced environmental communication and education organization during FY2011-2012 Environmental communication and education Toshiba Dalian Co., Ltd. (China) Chosen by Dalian City as an advanced environmental protection volunteer organization in FY2012 Environmental protection volunteer activities Toshiba Dalian Co., Ltd. (China) “With 10 Years of Life” advertisement for LED light bulbs received the following awards: 41st Fuji Sankei Group Advertising Award, Nikkei BP Ad Award, 91st New York Art Directors Club (ADC) Award 60th Asahi Advertising Award, 65th Dentsu Advertising Award Toshiba Corp. Spikes Asia Festival of Creativity 2012 32nd Newspaper Advertising Prize, 52nd Contest for Advertisements Beneficial to Consumers 16th Environmental Communication Awards 47th Japan Industrial Advertising Award and 61st Nikkei Advertising Award Advertisement of LED lighting for the Louvre Museum Toshiba Corp. Environmental Report Award (Minister of the Environment’s Award): Toshiba Group Envi- ronmental Report 2012 16th Environmental Communication Awards Environmental TV Commercial Category (Top Prize): Advertisement of LED lighting for the Toshiba Corp. Louvre Museum

Evaluation by the mass media and SRI Indices

16th Nikkei Environmental Management Level Survey First place (manufacturing) Toshiba Corp. CDLI (Carbon Disclosure Leadership Index) Chosen as one of 23 companies that excels in CDLI from among the Japan 500 companies Toshiba Corp. Toshiba Group Environmental Report 2013 68 chapter6 Chapter 6

Advancing to the Next Stage Vision and Strategies

Toshiba will introduce T-Compass, a new concept of environmental management. Expansion of ECPs

Toshiba Group is promoting environmental management by striving to achieve two types of goals: long-term goals based on Environmental Vision 2050 and short-term goals that can be attained by taking various measures in the immediate future. In FY2012, the Group formulated and announced the Fifth Environmental Action Plan, which aims to integrate business activities with environmental management. From FY2013, we will introduce T-Compass, a new concept of environmental management. Based on the knowledge we have acquired so far, we aim to establish our position as one of the world’s foremost eco-companies by strategically addressing new global trends in environmental Manufacturing High-e ciency management and advance and expand our environmental management systems even further.

Toshiba Group’s own criteria 1993: Application of LCA 2003: Introduction of Factor T, an indicator of eco-e ciency

- Development and proliferation of databases and calculation tools - Development of Toshiba’s unique eco-efficiency assessment method

Wider areas covered New global trends Covering all environmental aspects of business activities Compliance and Management

Scope 3 is a standard for calculating greenhouse gas Scope 3 Standard An environmental assessment standard on life cycles for emissions throughout the entire corporate supply products that is under discussion in Europe. chain. Toshiba uses this standard to publish data on Methodologies are under discussion regarding 14 types of greenhouse gas emissions. Environmental footprints environmental indicators on the assumption that such (For details, see page 43.) indicators will be used as benchmarks for comparison with other companies. LCA method= that covers the life cycle of Organizations’ LCA organizations. This method is currently under An environmental assessment method for water resources. consideration at ISO/TC207/SC5/WG10. Toshiba has This method is currently under consideration at sent its experts to participate in the standardization of Water footprints ISO/TC207/SC5/WG8. Toshiba has sent its experts to the method. participate in the standardization of the method.

Toshiba Group’s “compass” for its environmental activities 2013: Introduction of T-Compass, a new concept of environmental management Visualizing the environmental impacts in the four domains atural Reputation N Divide the environmental aspects of business activities into four resource domains and pursue environmental management progress using several indicators that are considered to be important in each area rather than a single indicator Giving thought to regional characteristics Develop an environmental compass for each region based on the degree of importance of environmental issues in each country and Water Energy territory

Stepping up life cycle management Advancing Stage to the Next Reduce the environmental footprints of products and services as well as organizations through collaboration in the supply chain and provision of products with the highest level of environmental Substance performance Representing the environmental issues to be addressed as symbols of the four cardinal compass points

Responding to climate change and Minimizing the risks involved in Minimizing the amount of water Minimizing the amount of natural energy issues (E) chemical substances (S) resources consumed (W) resources consumed (N)

* T-COMPASS : Toshiba Comprehensive environmental database and its Practical Application to Simplified and/orS treamlined LCA

69 Toshiba Group Environmental Report 2013 chapter6 Chapter 6

Characteristics of T-Compass Examples Vision and Strategies Advancing to the Next Stage As we strive to help realize a sustainable society, responding ● Toshiba Group’s environmental footprint properly to energy problems and climate change is our highest Toshiba Group’s environmental footprint represents the impacts of priority. In addition to these global environmental issues, however, all its businesses on the environment after taking such businesses’ there are many local agendas such as factors influencing human life cycles into consideration. (For a detailed breakdown of the data, health, ecosystems, and resources, and all these issues must be see the next page.) In the future, the Group will also disclose the Toshiba will introduce T-Compass, solved comprehensively. As Toshiba Group’s compass for it's environmental footprints of its individual products and services. environmental activities, T-Compass uses the letters standing for the four cardinal points (north, south, east, and west) to represent ■ 4 indicators Resources a new concept of environmental management. 1.2 2010 FY (=1.0) the environmental issues the Group should address. The Group’s 1 2011 FY approach of reducing overall environmental impacts remains 0.8 2012 FY

unchanged. We believe that by presenting our environmental 0.6 Expansion of ECPs contributions in concrete terms in four major domains, Toshiba Water resources 0.4 Greenhouse gases Group will be able to further share the social values that we provide with stakeholders inside and outside the Group. We aim to disclose environmental information in an easier-to-understand

way while carrying out the most advanced discussions on Chemical substances environmental management. ■ 8 indicators Resources ● Characteristic 1: Visualizing the environmental issues through 1.8 Toshiba Group’s unique radar chart Forests 1.4 Fossil fuels T-Compass expresses LCA-based environmental indicators using 1 Manufacturing High-e ciency its own radar chart. Symbols of the four cardinal compass points 0.6 are used to represent the four major domains all Toshiba Group Water resources 0.2 Greenhouse gases companies should address. In addition, other highly relevant environmental indicators are arranged appropriately on the Eutrophication Acidi cation compass to make reductions in overall environmental impacts easy to understand visually. Chemical substances In addition to typical environmental indicators in the four major ■ 12 indicators Resources 1.8 Waste domains, other indicators are also defined in detail (up to eight or Land use twelve points on the compass), thus enabling the disclosure of the 1.4 Forests 1 Fossil fuels

environmental information most appropriate to the recipients (see Compliance and Management 0.6 the table below). Water resources 0.2 Greenhouse gases As for indicators whose calculation method is still under discussion

and has not been reached agreement, they will gradually be Eutrophication Acidi cation disclosed while referring to trends in international discussions. ● Characteristic 2: Giving thought to regional characteristics Eects on ecosystems Air pollution Eects on human health Toshiba Group will use different environmental indicators * Figures for non-calculated for different regions in order to appropriately assess local indicators are noted as 1. environmental impacts such as air pollution, water contamination, and effects on the conservation of biodiversity. The Japanese Advancing to the next stage of version of the Life-cycle Impact assessment Method based on environmental management Endpoint modeling (LIME), which the Group currently uses, covers This year, 2013, marks the 20th anniversary of Toshiba Group's only evaluation coefficients based on data and values in Japan. application of LCA, and the 10th anniversary of the group's Cutting-edge research and development are currently being introduction of Factor T. For the next decade, the Group is Reputation carried out to adapt this method to various regions globally, and introducing T-Compass, a new concept of environmental we will introduce new evaluation coefficients as soon as they management, in order to add a new approach. become available. First, we will reorganize and systematize all the environmental ● Characteristic 3: Utilizing LCA databases initiatives we have implemented thus far into the four points of the Comprehensive databases of environmental impacts are compass, and restructure them so that Toshiba Group can provide indispensable for companies conducting life cycle assessments. social values as it strives to solve all of these environmental issues. Toshiba Group has independently developed databases of In addition, we will develop an environmental compass for each industrial input-output tables in order to assess the impacts of all region by paying attention to the significant environmental aspects Advancing Stage to the Next its products and services on the environment; in the future, the of business activities in each region. This will lead to the upgrading Group will further improve these databases and apply them in and expansion of measures that are already being promoted under combination with databases developed by other companies and the Fifth Environmental Action Plan, such as making excellent ECPs organizations. fit for local markets based on local preferences and encouraging all Environmental indicators (examples) employees to participate in Global Environmental Action in each 4 indicators 8 indicators/12 indicators region so that all such actions are connected at the global level. Metal resources [tons] or waste [tons] Natural resource Forest resources [m3] or land use [m2] Toshiba Group aims at global environmental management, which consumption [tons] (N) Fossil fuels [MJ] is not built on a uniform framework based on Japanese values but Greenhouse gas Greenhouse gas emissions [tons] rather is oriented toward the diversity of countries and territories missions [tons] (E) Air pollution [UAF] or Acidification [AP] in the world. We also aim to establish our position as one of the Chemical substance Effects on human health [HTP] or effects on ecosystems [AETP] risks [*] (S) Eutrophication [EP] world’s foremost eco-companies by continuing to run one step Water consumption [m3] (W) Water consumption [m3] ahead of others as we strive to solve environmental issues. * To be determined

Toshiba Group Environmental Report 2013 70 chapter6 chapter Advancing to 6 the Next Stage Overview of Environmental Impacts

Toshiba Group, as shown in the material flow below, is proceeding to quantitatively analyze the environmental impact at each

stage of the product/service life cycle—from materials procurement, manufacturing, and distribution to customer usage, prod- Vision and Strategies uct retrieval, and recycling. Furthermore, we are carrying out overall assessments on the environmental impact of chemicals,

Inputs Emissions Environmental impacts (Overall evaluation) Major initiatives

Materials*1 1,191,000 tons Climate change Urban region air pollution Natural resources Acidification Eutrophication consumed Iron 668,000 tons Other 393,000 tons (FY) Water resources Waste ...... Plastics 130,000 tons 2010 • Efficient use of resources P32 (FY2012) (1,000 tons) 2011 • Promotion of green 1,418 Other procurement ...... P36 1,392 1,152 1,273 1,191 2012 Plastics Materials Iron -10 0 10 20 30 40 50 2008 2009 2010 2011 2012 (FY) (billion yen) Expansion of ECPs

2 3 Energy 46,272TJ* Total GHGs* 2.73 million t-CO2 Emissions to atmosphere Electricity 38,467TJ Kerosene 52TJ CO2 2.49 million t-CO2 ·SF6 0.09 t-CO2 SOx 2,610 t City gas 4,023TJ Light oil 1,246TJ Non-CO2 0.27 million t-CO2 ·HFC 0.03 t-CO2 NOx 3,861 t Bunker A heavy oil 164TJ Other 2,040TJ ·PFC 0.15 million t-CO2 ·Other 0 t-CO2 Soot and dust 144 t LPG 279TJ (FY2012) 6,615 (t)(FY2012) (FY2012) 2.99 6,025 6,093 2.73 2.58 2.81 2.76 (million t-CO2) Soot and dust 4,035 3,479 .... 48,376 51,893 47,290 NOx • Reduction in GHG emissions P41 48,153 46,272 Non-CO2 (TJ) CO SOx 2 • Reduction in energy-derived 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) CO2 emissions...... P41 2008 2009 2010 2011 2012 (FY) Manufacturing High-e ciency Emissions to hydrosphere Water reused 3 • Reduction in the total waste Water 40.76 million m³ and recycled 15.37 million m3 Total wastewater 33.84 million m Total nitrogen 165 t Natural resources consumed COD 723 t Other 49 t Climate change volume and the final disposal Industrial water 29.99 million m³ Groundwater 5.03 million m³ Water reused 2.19 million m3 Suspended matter 1,929 t Effects on ozone layers volume ...... P45 City water 5.72 million m³ Other 0.018 million m³ 3 Acidification Urban region air pollution Water recycled 13.18 million m (t)(FY2012) Recycling Water resources (FY2012) (FY2012) Other Eutrophication • Reduction in the volume Total nitrogen (FY) 43.81 42.27 42.01 41.65 40.76 Resource 17.63 Chemical substances of water received ...... P46 (million m³) recycling 15.33 14.89 15.65 15.37 (million m³) Suspended 2010 (effects on human health) matter Chemical • Reduction in and management COD 2011 substances (effects on ecosystems) of emissions of chemical 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) Waste 2008 2009 2010 2011 2012 (FY) 2012 substances into the atmosphere 4 -10 0 10 20 30 ...... Chemical substances Chemical substances (atmosphere) Chemical substances* (hydrosphere) (billion yen) and hydrosphere P47 Amount handled 75,000 tons Emissions 1,320 tons Emissions 69 t • Responses to environmental Transfer to sewage 4 t (FY2012) (FY2012) ...... 72 75 75 1,920 (FY2012) risks P49 68 64 1,770 1,750 Compliance and Management (1,000 tons) 1,450 1,320 (tons) 125 (t) 87 87 95 Emissions R&D, design, and production R&D, 69 Transfer to 29 16 sewage 2008 2009 2010 2011 2012 (FY) 7 5 4 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) Waste Major products shipped 674,000 tons Waste Waste Waste recycled 272,000 tons Waste generated 290,000 tons Final disposal volume 5,000 tons (FY2012) (FY2012) (FY2012) (FY2012) 272 776 774 (1,000 tons) 290 278 290 17 Resource 242 226 247 245 572 674 261 271 recycling (1,000 tons) 541 (1,000 tons) 13 (1,000 tons) 8 5 5

2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY)

Natural resources consumed Energy (domestic logistics) GHGs from transport Emissions to atmosphere during transport • Reduction in CO2 emissions (Domestic logistics) SOx 0.4 t Climate change Gasoline 297kℓ Urban region air pollution 2 NOx 196.1 t associated with product Light oil 19,531kℓ CO 54,000 t-CO2 (FY) Soot and dust 12 t logistics...... P42 * Trucks only (FY2012) * Note: Incl. ships and aircraft. (FY2012) 2010 Waste (FY2012) 22,412 20,483 2011 20,488 18,135 19,828 (1,000 t-CO2) (t) 65 58 59 243 218 221 Soot and dust • 3R initiatives for packaging Reputation (kℓ) 52 52 200 208 NOx 2012 Logistics Logistics and sales SOx materials...... P34 -10 0 10 20 30 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) (billion yen)

Natural resources consumed Urban region air pollution Energy Greenhouse gas emissions Climate change 2 CO (Excl. power generation equipment) 7.18 million t-CO Eutrophication Electricity (Excl. power generation equipment) 185PJ* 2 2 (FY) * Yearly amount (FY2012) • Reduction in CO2 emissions (FY2012) 2010 Water resources 265 10.3 (million t-CO2) through eco products ...... P27 177 168 180 185 Use 6.88 6.55 7 7.18 2011 (PJ) 2012 Advancing Stage to the Next 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) -10 0 10 20 30 (billion yen)

End-of-life products Volume of end-of-life products collected End-of-life products Recycling Waste Resource Disposal (after recycled) 91,000 tons Amount of collection 112,000 tons Disposal (after recycled) 21,000 tons (FY) recycling 2010 (FY2012) (FY2012) (FY2012) • Increase in the volume of 130 119 (1,000 tons) 2011 .. Other 36 end-of-life products recycled P51 79 99 91 (1,000 tons) 166 150 29 31 (1,000 tons) PCs 128 2012 Medical equipment 100.3 112 21 21

4 home appliance recycling -10 0 10 20 30 products (billion yen) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) Collection and Collection

*1 Material inputs are calculated based on the Estimation Method for Material Inputs Using Input-Output Table (EMIOT), a method independently developed by Toshiba Group. ("EMIOT" : Estimation *2 The joule is a unit of energy measuring mechanical work, heat, and electricity. One joule equals about 0.239 calories. 1 TJ = 1012 J; 1 PJ = 1015 J method for Material-inputs using Input-Output Table) EMIOT uses ratios of resources used per unit production, which are prepared based on the Input-Output Table, to calculate total material *3 In this table, the CO2 emission coefficient for electricity in Japan is 3.50 t-CO2/10,000 kWh in FY2010, 4.76 t-CO2/10,000 kWh in FY2011, and 4.87 t-CO2/10,000 kWh in FY 2012. inputs.One distinctive feature of the method is that input-output analysis is applied only to the flow of resources from upstream to downstream. Another is that the volume of such resources by *4 The volume of hydrogen fluoride and its water-soluble salt emitted into hydrosphere since FY2009 is calculated to be zero because hydrogen fluoride used becomes industrial sector is stored in a database.Using this method, it is possible to calculate weights of input resources by resource type from the data on procurement (monetary value) by resource non-water-soluble salt through post-use treatment. category, which are gathered by materials procurement divisions. Therefore, data can be gathered not only on direct materials, but also indirect materials.Previously, it was difficult to clarify the amounts of resources in parts made of composite materials or the amounts of resources associated with services. EMIOT has enabled clarification of the amounts of resource inputs by resource type for such materials. 71 Toshiba Group Environmental Report 2013 chapter6 chapter Advancing to 6 the Next Stage greenhouse gas emissions, and resources/energy using the Life-cycle Impact assessment Method based on Endpoint modeling (LIME). (For details, see page 37.) We realized that the environmental impact is most significant during the material procurement, customer usage, and manufacturing stages of the product life cycle in that order. As such, we feel that it is extremely important to implement effective initiatives based on environmental impact assessments carried out across the entire product life cycle.

Moving forward, we are expanding the items on which we are collecting data and are striving to improve the precision of the Vision and Strategies data. This data was collected from 590 Toshiba Group companies (actual results for FY2012).

Inputs Emissions Environmental impacts (Overall evaluation) Major initiatives

2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY)

4 home appliance recycling -10 0 10 20 30 products (billion yen) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) 2008 2009 2010 2011 2012 (FY) Collection and Collection

*1 Material inputs are calculated based on the Estimation Method for Material Inputs Using Input-Output Table (EMIOT), a method independently developed by Toshiba Group. ("EMIOT" : Estimation *2 The joule is a unit of energy measuring mechanical work, heat, and electricity. One joule equals about 0.239 calories. 1 TJ = 1012 J; 1 PJ = 1015 J method for Material-inputs using Input-Output Table) EMIOT uses ratios of resources used per unit production, which are prepared based on the Input-Output Table, to calculate total material *3 In this table, the CO2 emission coefficient for electricity in Japan is 3.50 t-CO2/10,000 kWh in FY2010, 4.76 t-CO2/10,000 kWh in FY2011, and 4.87 t-CO2/10,000 kWh in FY 2012. inputs.One distinctive feature of the method is that input-output analysis is applied only to the flow of resources from upstream to downstream. Another is that the volume of such resources by *4 The volume of hydrogen fluoride and its water-soluble salt emitted into hydrosphere since FY2009 is calculated to be zero because hydrogen fluoride used becomes industrial sector is stored in a database.Using this method, it is possible to calculate weights of input resources by resource type from the data on procurement (monetary value) by resource non-water-soluble salt through post-use treatment. category, which are gathered by materials procurement divisions. Therefore, data can be gathered not only on direct materials, but also indirect materials.Previously, it was difficult to clarify the amounts of resources in parts made of composite materials or the amounts of resources associated with services. EMIOT has enabled clarification of the amounts of resource inputs by resource type for such materials. Toshiba Group Environmental Report 2013 72 2013 Environmental Report Committed to People, Committed to the Future.

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URL : https://www.webcom.toshiba.co.jp/csr/env.php 1st Edition, published in October 2013