Climate Change

Sharp’s Stance on Climate Change

Medium-term Environmental Goals

Climate change is the most pressing and important issue currently facing humanity. It is driving an increase in natural disaster severity that significantly impacts, both directly and indirectly, not only our daily life but business as well. Sharp recognizes that climate change is a material management issue and is working to address this issue through its long-term environmental vision, SHARP Eco Vision 2050, which was created in 2019 and which encompasses a goal to “Achieve net zero CO2 emissions in Sharp business activities.” To achieve our long-term environmental vision, we have also set new medium-term environmental goals—a 40% reduction in CO2 emissions by 2030 and a 60% reduction by 2035*.
Going forward, Sharp will continue to steadily reduce CO2 emissions by installing solar power systems in our plants and other sites, saving energy, building new solar power plants, and converting the company fleet to electric vehicles (EVs).

  • Compared with fiscal 2021. Includes emissions from fiscal 2021 onwards from Sakai Display Products Corporation, which became a wholly owned subsidiary of Sharp Corporation in June 2022.

Medium-term Environmental Goals for Achieving Net Zero CO2 Emissions from Corporate Activities

Material Issues in Addressing Climate Change

When greenhouse gas emissions for the entire Sharp value chain are calculated and analyzed, the results show that more than 80% of emissions are associated with the use of sold products. Based on this fact, Sharp has identified reducing environmental impact associated with product usage by customers (i.e., improving product energy efficiency) and Sharp business activities (i.e., manufacturing) as material issues in addressing climate change.

Breakdown for Sharp Greenhouse Gas Emissions (Fiscal 2020)

  • *1 Direct GHG emissions from business activities
  • *2 Indirect GHG emissions from energy usage in business activities

Sharp’s Approaches to GHG Emission Reduction

Sharp mainly takes the following two approaches for the reduction of GHG emissions.

Reducing GHG emissions by curbing energy consumption in business activities

  • Quantifying and analyzing energy consumption and GHG emissions from business activities
  • Reducing GHG emissions through productivity improvements and energy cost reductions at factories
  • Reducing GHG emissions by using renewable energy
  • Reducing GHG emissions during transportation by switching to more eco-friendly transportation modes

Reducing GHG emissions by creating environmentally conscious products

  • Quantifying and analyzing GHG emissions throughout the product life cycle
  • Incorporating AIoT devices and cloud technology to reduce GHG emissions during product use
  • Reducing GHG emissions through the provision of conducive products and services (e.g., solar power systems and storage batteries)

Participation in International Initiatives and Other Efforts

Sharp participates in the Science Based Targets initiative (SBTi)*3, which is focused on pursuing action that will achieve real and reliable results in the fight against climate change. Sharp has submitted its GHG reduction targets to the SBTi team, and they have certified them as being scientifically based and in conformance with the Paris Agreement.

In Japan, Sharp participates in the Liaison Group of Japanese Electrical and Electronics Industries for Global Warming Prevention*4, which is a group focused on further accelerating the pace of industry-wide climate change-related action. The members of this group share information about cutting-edge energy-saving initiatives being implemented in factories, and they engage in discussion related to policy recommendations.

GHG Emissions Reduction Targets

  • Scope 1 + 2: By fiscal 2031, reduce GHG emissions by 33% compared with fiscal 2018
  • Scope 3: By fiscal 2031, reduce GHG emissions by 33% compared with fiscal 2018
  • *3 This climate change-related initiative is a collaborative effort of the United Nations Global Compact (UNGC), the CDP (formerly Carbon Disclosure Project), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The SBTi promotes the establishment of science-based GHG emissions reduction targets in conformance with the Paris Agreement.
  • *4 A group comprised of representatives from Japan’s electrical and electronics industries, such as the Japan Electrical Manufacturers’ Association (JEMA) and the Japan Electronics and Information Technology Industries Association (JEITA). It promotes industry-wide efforts aimed at preventing global warming, such as the adoption of action plans for establishing a low-carbon society.

Disclosure of Climate-Related Information

Action on the TCFD Recommendations

The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board (FSB), an organization promoting international financial stability. In 2017 the TCFD released recommendations for companies to disclose information on the risks and opportunities of climate change. Sharp is expanding disclosure of climate-related information in accordance with the framework set by the TCFD.

1. Governance

Climate-related issues are monitored and countermeasures supervised by the President & COO. The Sharp Global SER Committee is chaired by the President & COO, with persons in charge of environmental affairs, administration, and human resources all serving as vice chairs. In addition, the general managers of each business unit and the presidents of subsidiaries are members of the committee, and members of relevant Head Office departments serve as the support team for the committee. The committee deliberates issues related to ESG, such as climate change, the thorough implementation of policies and visions, and important measures. The committee also oversees social issues, including climate change by confirming and reviewing the measures taken by each business unit and subsidiary.

2. Strategy

Climate-related risks can be divided into two major categories: those associated with the transition to a decarbonized economy, such as tighter regulations, technological advancement, and changes in the market; and those associated with physical changes arising from global warming, such as acute extreme weather events and chronic temperature rises.

Meanwhile, opportunities stemming from climate issues include products and services related to the creation of energy-saving products and resource efficiency, that is, the efficient use of resources in factory operations. We recognize that these risks and opportunities are related to Sharp’s business as follows.

Business Risks Facing Sharp

Type Timeline Risk Primary Response
[2° C Scenario] Transition Policy Long-term Sharp’s production sites in Japan account for about 70% of the company’s total greenhouse gas emissions (the rest is accounted for by China and the ASEAN region). If regulations are tightened in Japan, the company will face new burdens in the form of increased energy costs and a carbon tax based on the amount of greenhouse gas emissions. Improve production processes and strengthen the management of facilities to reduce greenhouse gas emissions from operations at each site. In FY2020, high-efficiency equipment to increase energy efficiency was installed and new sensors and switches were added to existing facilities to monitor energy consumption waste.
Legal Medium-term As a solution to climate change, the pace at which energy conservation regulations for products in various countries will be introduced and/or tightened is expected to accelerate. If a product does not meet the energy conservation standards and regulations of each country, or if the degree to which the standards are met is low, there is a possibility that sales of said product will be discontinued or it will not be selected by customers. This will lead to the sales of products and services stagnating or declining. Sharp has established a system to maintain and improve the environmental friendliness of its products while complying with environmental laws and regulations by administering the Green Product/Device system. In FY2020, by utilizing the guidelines that summarize the indicators for legal compliance and environmentally friendly design at the product development stage, Sharp was not subject to any lawsuits, fines, or penalties due to violations of environmental laws and regulations. The company also had no serious environment-related accidents.
[4° C Scenario]
Physical Change
Acute Medium-term Disasters caused by increasingly larger typhoons and increased precipitation have affected the company’s production sites and suppliers. Sharp recognizes that 10 of its sites (about 24% of all production sites) are located in areas that have been identified as particularly vulnerable to serious flood damage by Aqueduct, a tool developed by the World Resources Institute (WRI). In addition to the possibility of shutting down operations and harming employees' livelihoods, there is also the possibility of disruptions in the supply of parts from suppliers. This will increase operating costs, due to the cost of recovery and delays in delivery, and lead to decreased sales. To prepare for these physical risks becoming a reality, it is essential to promptly restore business operations after a disaster and to prevent damage before it occurs. In accordance with the Sharp Group Business Continuity Plan (BCP) Guidelines, which were formulated on the assumption that the company’s production sites, suppliers, and employees could be affected by a natural disaster or other event, the company has appropriately formulated, maintained, and improved its BCP. In addition, systems and roles have been clarified to avoid interruptions in important business operations and to enable early recovery in the event of an unavoidable interruption.
Even during the large typhoons that struck Japan in 2020, there were no events that threatened business continuity.

Business Opportunities in Sharp

Type Timeline Opportunities Primary Response
Products and services Medium-term Society in general is seeing a growing interest in renewable energy. Achieve expanded revenue by offering new services that allow everyone to incorporate renewable energy into their daily life. Offer PV systems that can be installed without any initial costs, thereby enabling renewable energy adoption not only for companies but also personal homes. In fiscal 2020, Sharp introduced a solar power service requiring no initial investment for corporate customers. In June 2021, Sharp launched COCORO POWER, a subscription PPA* service for new homes.
  • PPA: Power Purchase Agreement model
Products and services Short-term Increase product value and expand revenue by creating energy-efficient products that contribute to climate change mitigation and the realization of a decarbonized society. Certify products that offer an outstanding level of environmental performance, focusing primarily on energy efficiency, as Super Green Products (SGP), and further the development of in-house systems that encourage the creation of such products. There were 25 new SGP models in fiscal 2020 (total sales of 142.6 billion yen).
Resource efficiency Short-term Focus on reducing energy consumption via energy-efficient factory operations in order to achieve carbon neutrality in Sharp’s business activities by 2050. Achieve cost reduction via greater resource efficiency in direct operations. Replace older equipment with newer, high-efficiency equipment and perform regular on-site energy efficiency diagnostic testing to monitor unnecessary energy consumption. In fiscal 2020, in order to improve production processes and strengthen infrastructural management, Sharp introduced high-efficiency equipment to boost energy efficiency and equipped existing infrastructure with new sensors and switches to reduce energy consumption.

3. Risk Management

In accordance with the basic approach to risk management established in the Rules of Business Risk Management, Sharp incorporates climate-related risks into comprehensive risk management and assesses those risks.

4. Metrics and Targets

Sharp has established corporate targets (for fiscal 2031) aimed at reducing GHG emissions across the entire supply chain. These targets have been certified by the Science Based Targets initiative (SBTi) as being scientifically based and in conformance with the Paris Agreement.

Sharp aims—through the introduction of renewable energy, the adoption of energy-efficient factory operations, and other means—to reduce GHG emissions from business activities (Scope 1 + 2) by 33% compared with fiscal 2018.

The target for indirect GHG emissions from outside the scope of business activities (Scope 3) is focused on GHG emissions associated with the use of sold products (Category 11), as this accounts for more than 80% of such emissions. Here, too, the aim is to reduce emissions by 33% compared with fiscal 2018.

Sharp’s progress towards these targets as of fiscal 2020 is shown in the table below. For Scope 1 and 2, a 12% reduction compared with fiscal 2018 (base year) was achieved as a result of closing down older factories, consolidating production sites, and implementing other measures. On the other hand, Scope 3 emissions increased by 8% compared with fiscal 2018 (base year) due to increased product shipments.

In order to successfully achieve the targets it has established for fiscal 2031, Sharp will focus on adopting renewable energy, using more energy-saving measures in factories, and expanding the range and distribution of energy-efficient products, such as Super Green Products (SGP).

Progress towards Science Based Targets (Fiscal 2020 Results)

Category Base Year (fiscal 2018 results) Fiscal 2031 Target (33% reduction compared with fiscal 2018) Fiscal 2020 Results Base Year Comparison
Scope 1 + 2 1,077 thousand tons CO2 722 thousand tons CO2 951 thousand tons CO2 12% reduction
Scope 3 (Category 11) 27,489 thousand tons CO2 18,418 thousand tons CO2 29,593 thousand tons CO2 8% increase

Greenhouse Gas Emissions Based on the GHG Protocol Initiative

Sharp calculates greenhouse gas emissions based on the GHG Protocol*1 and then works to limit those emissions resulting from customer use of Sharp products and from Sharp’s business activities, including those in the supply chain.

  • *1 The GHG Protocol is an international standard for calculating greenhouse gas (GHG) emissions. It was jointly established by the World Business Council for Sustainable Development (WBCSD), a coalition of the world’s leading companies, and the World Resources Institute (WRI), a United States-based think tank.

Greenhouse Gas Emissions by Scope 1/2/3 Categories Based on the GHG Protocol Initiative (Fiscal 2020)

Category Emissions
(Thousand Tons CO2)
Notes
Scope 1 (direct GHG emissions from business activities) 270 Emissions from combustion of fuel, etc.
Scope 2 (indirect GHG emissions from energy usage in business activities) 681 Emissions from the use of electricity
Total of Scope 1 and Scope 2 951
Scope 3 (indirect GHG emissions from outside the scope of business activities) 1.Purchased goods and services 3,762 Emissions from the manufacture of materials procured for products in the 8 major categories*2 that the Sharp Group sold in the reporting year
2.Capital goods 249 Emissions from the construction, manufacture, and transportation of Sharp Group capital goods (such as equipment, machinery, buildings, facilities, and vehicles)
3.Fuel- and energy-related activities (not included in Scope 1 or 2) 144 Emissions from the procurement of fuels (natural resource extraction, manufacture, and transportation) consumed in the generation of electricity and heat the Sharp Group procures from other companies
4.Upstream transportation and distribution 225 Emissions from the transportation of Sharp Group parts and materials and products manufactured
5.Waste generated in operations 2 Emissions from waste disposal and treatment by the Sharp Group
6.Business travel 2 Emissions from business travel by all employees of Sharp Corporation
7.Employee commuting 6 Emissions from commuting by all employees of Sharp Corporation
8.Upstream leased assets Included in Scope 1 and 2 CO2 emissions
9.Downstream transportation and distribution 38 Emissions from the transportation (from retailers to end consumers) of products in the 8 major categories*2 that the Sharp Group sold in the reporting year
10.Processing of sold products 65 Emissions from processing at destination of Sharp Group products
11.Use of sold products 29,593 Emissions*3 from the use of products in the 8 major categories*2 that the Sharp Group sold in the reporting year
12.End-of-life treatment of sold products 3 Emissions from recycling 4 types of appliances*4 that Sharp Corporation sold in Japan
13.Downstream leased assets Not applicable
14.Franchises Not applicable
15.Investments Not applicable
Scope 3 total 34,096
Scope 1 + 2 +3 total 35,047
  • *2 LCD TVs, air conditioners, refrigerators, washing machines, air purifiers, microwave ovens, copiers/MFPs, solar cells
  • *3 Annual power consumption of each product × number of units sold × product life × CO2 emission coefficient
  • *4 TVs (CRT TVs, flat-panel TVs), air conditioners, refrigerators/freezers, washing machines/dryers

Curbing Business Activity-Linked Greenhouse Gas Emissions

Fiscal 2020 Objectives Fiscal 2020 Achievements Self-Evaluation
  • Energy intensity: Improve by 20%
    (baseline year: fiscal 2012)
  • Improved by 21%
    (baseline year: fiscal 2012)
★★★
Priority Objectives for Fiscal 2021
  • Energy intensity: Improve by 25%
    (baseline year: fiscal 2012)
  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent

Sharp Group Activities to Control Greenhouse Gas Emissions

Sharp is taking active measures to curb greenhouse gas (GHG) emissions resulting from its business activities in an effort to contribute to the realization of a decarbonized society. The Sharp Group’s GHG emissions from business activities in fiscal 2020 decreased by 2.4% to 951,000 tons CO2 compared to the previous fiscal year thanks to efforts such as transferring manufacturing to more efficient plants and consolidating production bases. The improvement rate of energy intensity rose to 21%, compared to the baseline year of fiscal 2012.

Each Sharp production base is strengthening efforts involving all equipment and systems—ranging from production lines to utility systems for supplying electricity, gas, and water—to boost energy efficiency and reduce GHG emissions. In particular, at the LCD and electronic component plants, the production, engineering, and environmental departments work together to reduce consumption of base-load energy. Efforts include installing inverters*1 and optimizing the air conditioning in clean rooms*2. Going forward, Sharp will pursue further energy-saving measures and boost production efficiency in line with its business expansion.

  • *1 A device to control the number of motor rotations.
  • *2 A room where the temperature, humidity, and cleanliness are kept at controlled levels.

Amount of GHG Emissions

Energy Intensity (Baseline Year: Fiscal 2012)

  • *3 HFCs, PFCs, sulfur hexafluoride (SF6), nitrogen trifluoride (NF3)

GHG Emissions by Region (Fiscal 2020)

Case Study

Airest Air-Purifying Household Air Conditioner Wins METI Minister’s Prize at 2020 Energy Conservation Grand Prize

Sharp’s Airest air-purifying household air conditioner was awarded the highest prize, the METI Minister’s Prize (household category), in the Products and Business Models category of Japan’s 2020 Energy Conservation Grand Prize program.

Organized by the Energy Conservation Center, Japan (ECCJ) and supported by the Ministry of Economy, Trade, and Industry (METI), this awards program recognizes outstanding energy conservation practices in Japan’s industrial, business, and transportation sectors, while also recognizing advanced, highly energy-efficient products.

Airest’s new construction combines an air conditioner and air purifier in one, making it the only home-use air conditioner in the industry to have met air cleaning standards stipulated by the Japanese air purifier industry*1. Compared to conventional air conditioners, Airest’s dust-collecting filter allows 99% less dust*2 to enter the unit. Airest also limits the amount of humidity inside the air conditioner*3. These features prevent air volume from decreasing due to dust accumulated inside the air conditioner, thus maintaining energy efficiency. And because users do not need to separately purchase an air conditioner and air purifier, Airest saves on resources and electricity bills. Benefits such as these led to high praise for Airest and are the reason for this award.

  • *1 For residential air conditioners. Based on the JEM 1467 standard for household air purifiers of the Japan Electrical Manufacturers’ Association. As of July 2021.
  • *2 A test comparing the amount of dust accumulated inside the air conditioner indoor units of Sharp’s previous model (AY-J22D) and Airest AY-L22P. Result: 365.7 mg of dust inside the AY-J22D, and 1.5 mg of dust inside the AY-L22P.
  • *3 Based on Sharp research. In a room of 27°C and 60% humidity, Sharp’s previous model (AY-J40D) and Airest AY-L40P were operated for two hours in cooling mode, and the humidity inside the air conditioner indoor units was measured during this time. Result: The humidity inside the AY-J40D rose to a maximum of 95%, compared to 65% inside the AY-L40P.

Airest L-P Series air-purifying household air conditioner

Award certificate and trophy

Case Study

COCORO AIR AIoT*1 Function on Plasmacluster Air Conditioners Wins Excellence Award at 3rd EcoPro Awards

COCORO AIR is an AIoT function on Sharp’s wireless LAN adapter-equipped Plasmacluster air conditioners (models L-P/X/H/D/S Series, and others). COCORO AIR was awarded the Judging Panel Chair Prize (Award of Excellence) at the 3rd EcoPro Awards. This awards program is organized by the Sustainable Management Promotion Organization’s EcoPro Awards Secretariat and sponsored by MOF, MAFF, METI, MLIT, and MOE*2

The EcoPro Awards are bestowed in recognition of products, services, technologies, solutions, and business models that incorporate concrete, outstanding eco-friendly features and that are highly regarded by businesses, consumers, investors, and market players in the Japanese market. The program aims to accelerate the development and diffusion of such excellent initiatives and contribute to a sustainable society through commendation in view of shifts in socioeconomic conditions, including economic globalization, enactment of the Paris Agreement, and the establishment of the SDGs.

COCORO AIR is activated by connecting a Sharp wireless LAN adapter-equipped Plasmacluster air conditioner to the internet. Sharp was the first in the industry to equip its air conditioners with a wireless LAN adapter to allow energy-efficient control via cloud-based AIoT services. This functionality has been rolled out in both mass-market models and top-of-the-line models. COCORO AIR’s ability to allow energy-efficient control of air conditioners using weather forecasts garnered high praise and led to the award.

  • *1 AIoT is a word coined by Sharp, combining the words AI (artificial intelligence) and IoT (Internet of things). AIoT is a vision for making products and services more integral to people’s lives by connecting them via the cloud using AI. AIoT is a registered trademark of Sharp.
  • *2 Japan’s Ministry of Finance (MOF), Ministry of Agriculture, Forestry and Fisheries (MAFF), Ministry of Economy, Trade and Industry (METI), Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and Ministry of the Environment (MOE)

Wireless LAN adapter-equipped Plasmacluster air conditioners

Award certificate

Trophy

Product Life Cycle Assessment

Identifying and Reducing Environmental Impacts throughout the Life of Products

Sharp performs a life cycle*1 assessment (LCA) on its products to identify their impact on the environment throughout their service life and uses the results in product planning and development.

Consumer electronics generally have a large impact on the environment during use. Thus, by focusing on improving their energy savings, overall environmental impact can be effectively reduced. A decrease in the environmental impact of 8K*2 LCD TVs was achieved by improving energy efficiency and reducing the products’ weight.

LCA Data for 8K LCD TVs

  • *1 The life of a product from materials and parts procurement to manufacture, distribution, use, disposal, and recycling.
  • *2 Ultra-high-definition, next-generation video standard with a resolution of 7,680 x 4,320 pixels (33.18 million pixels)—16 times the resolution of current 2K full high-definition broadcasts (1,920 x 1,080 pixels; 2.07 million pixels) and four times that of 4K (3,840 x 2,160 pixels; 8.29 million pixels).
  • *3 CO2 emissions during use are calculated using a CO2 emission coefficient (adjusted) announced by Japan’s Electric Power Council for a Low Carbon Society (ELCS).

Utilizing Renewable Energy

Sharp has introduced the use of PV systems, green power, and other power sources to its domestic and overseas production bases and is advancing the use of renewables to do its part to create a decarbonized society.

In fiscal 2020, Sharp generated 5.81 million kWh of electricity and purchased 5.09 million kWh of green power*4. This is equivalent to the annual energy consumption amount*5 of roughly 4,000 average households in Japan. Sharp will continue to work hard at reducing carbon emissions even further in the future.

  • *4 Including green power certificates.
  • *5 Calculated from data from the Federation of Electric Power Companies of Japan.

Solar power systems installed on the roofs of Sharp production bases (left: Kameyama Plant; right: NSEC in China)

Case Study

Actively Spreading the Use of Renewable Energy in Vietnam

In June 2020, Sharp Energy Solutions Corporation (SESJ)*1 completed the construction of a mega solar power plant in Ninh Thuan Province, Vietnam. The project was a collaboration with multiple partners, including T&T Group Joint Stock Company (T&T)*2 of Vietnam and T&T affiliate Ninh Thuan Energy Industry Joint Stock Company*3.

The new plant has an output of approximately 45 MW-dc, with annual power generation capacity estimated at 76,373 MWh/year*4. This is equivalent to the amount consumed in a year by about 40,500 average Vietnamese households*5.

Also, in December 2020, SESJ built another mega solar power plant in Binh Dinh Province, Vietnam. The project was a collaboration with multiple partners, including power generating company Viet Nam Viet Renewable Energy Joint Stock Company*3 and local construction company NSN Construction and Engineering Joint Stock Company*6.

The new plant has an output of approximately 50 MW-dc, with annual power generation capacity estimated at 82,506 MWh/year*4. This is equivalent to the amount consumed in a year by about 43,700 average Vietnamese households*5.

As of the end of fiscal 2020, SESJ had constructed seven solar power plants in Vietnam, generating a combined capacity of approximately 340 MW-dc. The Vietnamese government has formulated a plan*7 to raise solar power generation capacity in the country to 12,000 MW by the year 2030. SESJ remains committed to spreading renewable energy in Vietnam.

  • *1 SESJ is a subsidiary of Sharp Corporation, specializing in energy solutions such as the sales of PV systems and the installation of electrical equipment.
  • *2 A Vietnam-based conglomerate operating in multiple industries, such as investment, real estate, finance, healthcare, and logistics.
  • *3 This company is in charge of operating the plant.
  • *4 Estimate for the initial year of operation.
  • *5 Calculated at 1,887 kWh per household.
  • *6 A Vietnamese company handling architectural design, construction, and others.
  • *7 Source: the Vietnamese government’s 7th Power Development Plan (PDP7).

Mega solar power plant in Ninh Thuan Province

Mega solar power plant in Binh Dinh Province

Case Study

COCORO ENERGY, Sharp’s Cloud-Based HEMS Service, Wins Agency for Natural Resources and Energy Commissioner’s Prize at 2020 New Energy Awards

COCORO ENERGY, Sharp’s cloud-based HEMS*1 service, received the Agency for Natural Resources and Energy Commissioner’s Prize in the Products and Services category at the 2020 New Energy Awards. This awards program seek to accelerate society’s adoption of renewable energy by honoring outstanding developments in renewable-energy-related products and services, and applications of distributed energy.

COCORO ENERGY is a cloud-based HEMS service in which Sharp’s proprietary AI carries out the complex task of managing energy usage inside the home, thus giving the user economy and peace of mind. The cloud-based AI learns the users’ daily living patterns and combines this knowledge with weather information to achieve efficient energy management tailored exactly to each home.

  • *1 HEMS: Home energy management system. A system for managing and controlling the energy used in a home.

Example of how COCORO ENERGY works

The COCORO ENERGY HEMS system was honored with a New Energy Award for contributing to rising energy self-consumption rates through an AI predictive control function for efficiently storing into the storage battery the excess electricity from post-FIT*2 solar power systems. The system was also lauded for an AI thunderstorm advisory function that automatically stores the necessary electricity in case of a power outage caused by a thunderstorm.

  • *2 FIT (feed-in tariff) is a system in which power companies pay producers of renewable energy a fixed price for a fixed period of time.
    Post-FIT refers to the completion of a 10-year fixed-price contract.

Award certificate and plaque

AI predictive control and AI thunderstorm advisory function

Reducing Logistics-Related Environmental Impact

Fiscal 2020 Objectives Fiscal 2020 Achievements Self-Evaluation
  • Energy intensity: Improve by average of 1% each year
    (average for fiscal 2016 to 2020)
  • Energy intensity: Improved by average of 5% each year
    (average for fiscal 2016 to 2020)
★★★
Priority Objectives for Fiscal 2021
  • Energy intensity: Improve by average of 1% each year
    (average for fiscal 2017 to 2021)
  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent

Reducing the Environmental Impact of Logistics in Japan

Sharp observes a rule set forth in the Japanese Act on the Rational Use of Energy (Energy Conservation Act) that requires specified shippers to reduce energy intensity by 1% or greater per year. All Sharp Group companies in Japan are working to reduce the environmental impact and costs associated with logistics.

In fiscal 2020, Sharp Group greenhouse gas (GHG) emissions from shipping activities in Japan were down 22% from the previous fiscal year to 14,000 tons CO2. For Sharp Corporation, energy intensity was improved by an average of 5% for the most recent five years (fiscal 2016 to 2020). Sharp is steadily implementing a modal shift*1, a change from conventional trucking to more environmentally friendly modes of transport, such as shipping (non-international coastal trading vessels) and rail (Japan Railways containers). And, by unloading imported goods at harbors chosen for their proximity to their main sales locations, Sharp is reducing re-transport between distribution centers. These efforts enable Sharp to reduce the environmental impact of its distribution activities. For shipments, Sharp has been certified with an Eco Rail Mark*2 by the Ministry of Land, Infrastructure, Transport, and Tourism and the Railway Freight Association.

  • *1 To shift freight transport from conventional trucking to more environmentally friendly modes of transport, such as rail and shipping.
  • *2 Products or companies that use a certain amount of rail transport for freight are given Eco Rail Mark certification. The mark is used on items such as product packaging and brochures to inform the public that a company uses environmentally friendly modes of transport.

GHG Emissions from Freight Shipments (Japan)

Eco Rail Mark certification

Reducing the Environmental Impact of International Logistics

Sharp has a wide range of initiatives to reduce the amount of GHGs that are emitted as a result of international shipping. The company is reducing airfreight volume as it switches to environmentally friendly modes of transport, and it is also improving load efficiency. Further, it is reviewing shipping routes and switching to harbors that are closer to the final destinations for products. Sharp is also switching to suppliers located closer to its factories. In fiscal 2020, Sharp’s GHG emissions from international transport were 158 thousand tons CO2.