The Environment

• Toshiba Group's Basic Policy for the Environment
• Environmental Vision 2050
• Environmental management
• Initiatives for Biodiversity Conservation
• Action Plan for FY2010 and Actual Results
• Greening of Process (Environmentally Conscious Manufacturing)
• Greening of Products (Environmentally Conscious Products)
• Greening by Technology (Energy and Environmental Technologies)
• Environmental Communication

Toshiba Group's Basic Policy for the Environment

Based on the recognition that it is our responsibility to maintain the health of the global environment as an irreplaceable asset for future generations, Toshiba contributes to the development of a sustainable society by promoting environmental activities designed to realize a world that is low carbon, recycling based and environmentally harmonious.

• Toshiba Group Standards of Conduct Chapter 1 5. Environment

Environmental Vision 2050

In order to evolve as one of the world's foremost eco-companies, Toshiba Group's Environmental Vision 2050 aims to realize a world where people can lead affluent lives in harmony with the Earth. The Group uses an indicator to measure overall environmental efficiency by taking into consideration harmony with the Earth as well as value creation, and aims to increase overall eco-efficiency tenfold by 2050 compared to the 2000 level.

In order to achieve this goal, we are promoting initiatives aimed at reducing the environmental impact of all our products and business activities, from the perspective of the mitigation of climate change, the efficient use of resources, and the management of chemicals, based on the concept of the three “Greens”: Greening of Process, Greening of Products, and Greening by Technology.

The three “Greens” and the management supporting them

Environmental Management

Environmental management is promoted throughout Toshiba Group. At the global level, we have organized regional environmental divisions in Europe, the United States, China, and Asia-Oceania in order to regionally implement environmental measures. With a view to promoting Toshiba Group's environmental management worldwide, we have also created Toshiba Group's Environmental Audit System, designed to provide training for local auditors who conduct environmental audits of overseas sites.

Toshiba Group Environment Management Structure

Initiatives for Biodiversity Conservation

Promoting initiatives for biodiversity conservation in three major areas

Toshiba Group's corporate activities not only benefit from ecosystems, but also affect them in various ways. Given this, in our environmental management, we place high priority on the conservation of biodiversity, which is the foundation of ecosystems, and promote environmental initiatives through our products, production sites, and social contributions. In FY2010, we also introduced biodiversity initiatives in our supply chain.

Through our products : Developing products designed to contribute to conserving biodiversity

At Toshiba Group, we assess the impact of products on biodiversity using the life-cycle impact assessment method based on endpoint modeling (LIME), which is designed to comprehensively assess environmental impact from four different perspectives: 1. human health, 2. biodiversity, 3. social assets, and 4. primary production.

Through our production sites : Developing ecosystem networks in collaboration with local communities

In collaboration with outside experts, Toshiba Group has conducted quick assessments of biodiversity potential in areas surrounding our production sites. These assessments were made to evaluate the environmental potential of wooded areas and river systems located within a 2-km radius of each site in order to examine how our production sites can contribute to the development of local ecosystem networks through land use.

In FY2010, we conducted assessments at 14 sites in Japan and one site in the Philippines. We assessed wooded areas on a fivelevel scale and categorized the characteristics of biodiversity into four different types. In FY2011, we will choose characteristic sites based on the results of these assessments and select the species to be protected, including indigenous or rare species in surrounding areas. We aim to create ecosystem networks in the future in collaboration with local stakeholders.

Assessment Results for Three Production Sites and Preliminary Measures Taken for Biodiversity Conservation

Toshiba Fuchu Complex (Tokyo, Japan)

Landscape type	Densely populated residential area on a plateau
Characteristics	Area with many wooded regions and rivers
Measures taken for biodiversity conservation	Protection of an indigenous dandelion species (Taraxacum platycarpum) growing on the factory premises

Toshiba Yokohama Complex (Kanagawa, Japan)

Landscape type	Reclaimed industrial area
Characteristics	Area with many wooded regions
Measures taken for biodiversity conservation	Protection of a rare damselfly species (Sympetrum risi risi) and other rare species inhabiting the local lagoon

Kaga Toshiba Electronics Corporation (Ishikawa, Japan)

Landscape type	Woodland on a hill
Characteristics	Area with many wooded regions and rivers
Measures taken for biodiversity conservation	Survey on northern goshawks and other rare species inhabiting the surrounding areas

Local ecosystem networks created in collaboration with stakeholders

Through social contributions : Continuing efforts to create forests

Toshiba employees are working to promote the 1.5 Million Tree-planting Project

Action Plan for FY2010 and Actual Results

Target and Achievement for Overall Eco-efficiency

Toshiba Group uses the degree of improvement in eco-efficiency generally known as the “Factor” as the indicator of improvement in its environmental management. This is calculated by dividing the value of products offered by the assessment of environmental impact. The overall eco-efficiency is calculated by combining product eco-efficiency and business process eco-efficiency.
In FY2010, product eco-efficiency increased by 2.44 times over the 2000 level, exceeding the target (2.2 times) due to improvements in product value and reductions in environmental impact mainly in the area of digital products and devices. Meanwhile, due to an increase in sales resulting from improvements in recycling and economic conditions, business process eco-efficiency increased by 1.55 times over the 2000 level, also exceeding the target (1.2 times). Accordingly, overall eco-efficiency increased by 2.26 times over the 2000 level, enabling us to achieve our target (2 times).

Progress of overall eco-efficiency

Targets and Achievements for Fourth Environmental Action Plan^*

In our Fourth Environmental Action Plan, we have developed indicators to assess improvements in product eco-efficiency from the viewpoint of the development of environmentally conscious products. We have also developed indicators to assess improvements in business processes from three perspectives: the mitigation of climate change, the efficient use of resources, and the management of chemicals.
In FY2010, we achieved three out of four target items with regard to products and seven out of nine target items with regard to business processes. In particular, sixteen products were certified as Excellent ECPs, surpassing our targets (see p. 36). Meanwhile, we were unable to achieve our targets regarding reduction in CO₂ emissions as a result of the slow recovery in sales in our social infrastructure business since the Lehman crisis. However, there have been improvements from last fiscal year in terms of business processes, despite delays in progress toward achieving zero-waste emissions at overseas production sites in countries with underdeveloped systems and infrastructures for recycling.
In FY2011, we will adopt measures to increase the sales of Excellent ECPs and support overseas recycling companies in order to achieve our final targets for FY2012.

* In FY2011, the Voluntary Environmental Plan was renamed the Environmental Action Plan.

The Fourth Environmental Action Plan: Target Achievement Level

Enhancement of Product Eco-efficiency
	Indicator
Greation of Environmentally Conscious Products (ECPs)	Percentage of ECPs to net sales	%	60	70		70	80
	Number of Excellent ECPs		15	16		20	25
	15 specified chemicals contained in products1,2	%	100	100		100	100
	CO2 emissions reductions through Eco Products		6.3	4.0		6.8	7.3
Business Process Innovation
Mitigation of Climate Change	Reduction of energy-derived CO2 emissions (compared with FY1990)3 (Rate to net production output)	%	45	48		44	47
	Manufacturing sites in Japan	%	45	51		44	47
	Reduction of greenhouse gas emissions (other than CO2) [Total emissions]	%	36	68		37	38
	Reduction of CO2 emissions associated with product logistics in Japan [Rate to net production output]	%	40	47		42	44
Management of Chemicals	Reduction of total emissions of chemicals to air and water [Total emissions]	%	50	28		52	54
Efficient Use of Resources	Reduction in the total amount of waste generated [Rate to net production output]	%	20	32		22	24
	Sites achieving zero emissions of waste4	%	100	71		100	100
	Increase in the amount of recycling of end-of-use products (compared with FY2001)	%	160	283		170	180
	Reduction in water intake [Rate to net production]	%	9	29		9.5	10

Note: Unless otherwise specified, the targets are based on comparison with FY2000 and cover manufacturing and non-manufacturing sites worldwide. Net production output means: Nominal output (Japan + overseas) / Corporate goods price index (electrical equipment) announced by the Bank of Japan for each year (index for 1990 is 1); and is used for the purpose of evaluating activities.

1

15 substance groups subject to restriction: [1] bis (tributyl tin) oxide (TBTO), [2] tributyl tins (TBTs), triphenyl tins (TPTs), [3] polychlorinated biphenyls (PCBs), [4] polychlorinated naphthalenes (PCNs with 3 or more chlorines), [5] short-chain chlorinated paraffins, [6] asbestos, [7] azo colorants, [8] ozone-depleting substances, [9] radioactive substances, [10] cadmium and its compounds, [11] hexavalent chromium compounds, [12] lead and its compounds, [13] mercury and its compounds, [14] polybrominated biphenyls (PBBs), and [15] polybrominated diphenyl ethers (PBDEs). (Detailed definitions and specific applications to be excluded are specified separately.)

2

Total sales of products that do not contain any of these 15 specified chemical substances are used when the percentage of certain products to total sales is given.

3

3.51 t-CO₂/10-thousand kWh is used for the power factor in Japan, and GHG Protocol data is used overseas.

4

Toshiba Group's definition of “zero emissions” of waste is that the amount of landfill waste after treatment is equivalent to less than 0.5% for manufacturing sites and 1.0% for non-manufacturing sites of the total amount of by-products and other items generated (total amount of waste discharged) as a result of business activities (excluding the sites with restrictions under laws and administrative guidance).

5

Evaluation: Targets surpassed (120% & above); Targets reached (100% & above but below 120%); Targets not reached (below 100%)

Products: Targets for the Creation of Excellent ECPs and ECPs and Actual Results

Business Processes: Energy-derived CO₂ Emissions, Total Amounts, and Emissions Per Unit Production

Business Processes: Total Amount of Waste Generated

Business Processes: Emissions of Chemicals Requiring Reduction

Greening of Process (Environmentally Conscious Manufacturing)

Aiming to achieve the world's lowest level of environmental impact

An increase in production in response to growing demand involves an increase in the consumption of energy and resources. Manufacturers are thus faced with the challenge of controlling increases in energy consumption.

As a manufacturer producing a wide range of products in factories around the world, Toshiba Group is working to minimize the increase in environmental impacts resulting from increased production, from the perspective of mitigation of climate change, management of chemical substances, and efficient use of resources. More specifically, we have been focusing our efforts on semiconductor factories, whose greenhouse gas (GHG) emissions account for approximately half our total emissions, in order to contribute to achieving Japan's goal of reducing total greenhouse gas emissions by 25% by 2020, compared to the 1990 level.

In order to promote efficient use of resources, we are working to achieve our zero-emission goal in all our production sites by reducing the amount of waste generated and recycling it.

With regard to the management of chemical substances, we are working to replace hazardous chemicals with alternative substances and eliminate their use in order to reduce hazardous chemical emissions.

Greening of Process from three perspectives

Reducing greenhouse gas emissions based on detailed medium- and long-term reduction plans

As a result of reducing SF6 (sulfur hexafluoride) used for gas insulated transformers and installation of removal systems for GHGs other than CO₂ at semiconductor fabs, GHG emissions decreased by about half in FY2000 compared to the 1990 level. From FY2001, however, emissions continued to increase due to the construction of new buildings and increased production at semiconductor fabs, reaching a peak in FY2007. Although emissions are expected to further increase in the future due to production recovery, we will continue to implement energy-saving measures to minimize the increase. Meanwhile, due to the effects of the Great East Japan Earthquake, CO₂ emissions caused by power consumption are likely to increase. Therefore, we will formulate detailed medium- and long-term emission reduction plans in response to the effects of the earthquake and the government's energy policies.

Greening of Products (Environmentally Conscious Products)

Aiming to achieve the highest level of environmental performance for all products

As the demand for social infrastructure products and the use of home appliances in emerging and developing countries are increasing considerably, significant increases are expected in power consumption and CO₂ emissions. In order to support convenient and comfortable lifestyles while at the same time minimizing CO₂ emissions, Toshiba Group is doing its utmost to achieve the highest level of environmental performance for all products that we develop.

Environmental conscious products (ECPs) are developed through the procedures shown below. In FY2010, there was an increase in the number of products with outstanding environmental performance, resulting in 16 products being certified as Excellent ECPs.

1. Product planning stage

Setting “eco-targets,” which specify the conditions required to achieve the highest level of environmental performance

2. Development and design stage

Assessing whether product designs meet ECP standards with regard to the mitigation of climate change, the effective use of resources, and the management of chemicals

3. Product approval stage

Confirming whether products have achieved the eco-targets and meet ECP standards, and certifying products with the highest level of environmental performance (at the time of launch) as Excellent ECPs

Products Certified as Excellent ECPs in FY2010

Greening by Technology (Energy and Environmental Technologies)

Contributing to the development of infrastructure that provides a stable power supply and reduces CO₂ emissions

More and more efforts are being made to mitigate climate change throughout the energy industry, including power generation and distribution. Using the technological expertise accumulated over the past years, Toshiba Group will contribute to providing a stable power supply and mitigating climate change. In particular, we are focusing on developing a smart grid, which is attracting public attention as the next-generation power supply network, and to this end, we have established a research building to conduct demonstration experiments. Our goal is to create systems for a smart community, including water and sewage systems as well as transportation systems.

Optimizing the balance between power supply and demand

A smart grid is an energy management system designed to connect a number of dispersed power sources such as solar or wind power facilities and storage batteries to homes, factories, buildings, and other power consumers (end users) via a power and communication network. It analyzes and predicts power demand and power generation in different locations by using telecommunications technology and provides power from the most appropriate source to the areas of demand.

A smart grid enables us to make effective use of natural energy and to provide a stable power supply. It also provides a visual system for monitoring energy consumption, thereby helping to achieve effective use of energy so as to reduce CO₂ emissions.

Environmental Communication

Working together with our stakeholders to promote environmental management

With a view to promoting open environmental management, Toshiba Group takes an active part in providing information to our stakeholders that facilitates communication with them and helps to develop mutual understanding and collaboration.

Actively participating in exhibitions held in countries around the world

Toshiba Group actively participates in environmental exhibitions held in countries around the world.

In FY2010, we participated at various exhibitions held in Japan, Asia, Europe, and the United States and widely advertised Toshiba Group's environmental initiatives. We also held the 20th Toshiba Group Environmental Exhibition, which had around 4,500 visitors.

Major exhibitions in which Toshiba participated (FY2010)

Exhibition period	Exhibition name
February 2011	Eco-products International Fair 2011 (India)
January 2011	The 20th Toshiba Group Environmental Exhibition (Toshiba Headquarters Building, Tokyo, Japan)
January 2011	2011 International CES (U.S.A.)
December 2010	Eco-Products 2010 (Tokyo, Japan)
October 2010	Interactive Fair for Biodiversity (Aichi, Japan)
September 2010	IFA Berlin International Consumer Electronics Trade Fair (Germany)

Developing environmental communication activities worldwide

We are promoting various communication activities in order to communicate Toshiba Group's activities to a wide range of stakeholders, including local communities in areas around Toshiba's production facilities and offices, as well as schools, customers, companies, and students, and to discuss environmental problems together.

Providing information through environmental reports and websites

Since FY1998, Toshiba Group has been publishing annual reports in order to provide information on our environmental policies and practices. The Environmental Report 2010 won several awards, including an award at the 14th Environmental Communication Awards . We also provide information in a timely manner on our environmental management website and eco style website

• Stakeholder Dialogue in US (Jan. 2011)