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Committed to People, Committed to the Future.

CEO Commitment

[Image] CEO Commitment

[Image] Toward the Achievement of Environmental Vision 2050 Toshiba Corporation President and CEO

Introduction

In July 2015, Toshiba Corporation celebrated the 140th year of its founding. Tanaka Engineering Works, which Hisashige Tanaka opened as a telegraph factory in July 1875, is one of the roots of our company and the predecessor to Shibaura Engineering Works, which later manufactured motors and electric generators. Another root was Hakunetsu-sha & Co., Ltd., which was founded by Ichisuke Fujioka in 1890. Hakunetsu-sha was Japan’s first company to manufacture light bulbs and was subsequently developed into Tokyo Electric Company. In 1939, these two companies were merged into Tokyo Shibaura Electric Co., Ltd. Then, in 1984, the company was renamed as Toshiba Corporation, the name it is known by today. Hisashige Tanaka, one of the founders of Toshiba, coined the motto, “We respond to requests for designing all kinds of machines,” to meet societal needs and to develop technologies and innovations. In this way a legacy comprising many inventions has been left behind. Ichisuke Fujioka, another Toshiba founder, is known for creating a number of products each of which were the first of their kind in Japan, including incandescent light bulbs, with the aim of contributing to the public good. These two founders' commitment to contributing to people's lives, as well as culture and society, has been passed down to later generations as our corporate philosophy. Staying true to this philosophy, we have created numerous innovations and contributed to society using outstanding technologies over the past 140 years. We will now return to our roots and make a new start by sharing our group's corporate philosophy.

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Toward the Sixth Environmental Action Plan

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Environmental management is defined as building environmental perspectives into all stages of corporate management to contribute to reducing environmental impact through our corporate activities, products and services. We will remain united in our efforts as a group to promote environmental management toward achieving Environmental Vision 2050, our corporate vision for 2050.

With a view to establishing our position as the world's foremost eco-company by FY2015, we have strived to improve environmental management. To that end, we have established specific performance areas to be achieved, and formulated and published the Fifth Environmental Action Plan as a specific action plan. As a result of our efforts to promote specific strategies as our four “Green” initiatives, we achieved our goals in many areas by FY2014. Nevertheless, we still need to step up our efforts in some areas.

Our highest priority is to once more ensure environmental risk compliance. Over the past several years, serious environmental accidents and legal violations have occurred at our Chinese production sites due to environmental facility deficiencies, some of which caused operations to be suspended and penalties to be imposed. Legal compliance is the basis of all corporate activities. Therefore, we will thoroughly analyze the causes of incidents that have occurred to enhance our compliance system. At the same time, we believe it is necessary to develop personnel who can systematically prevent potential risks.

Also, to further advance Toshiba Group's environmental management, we have formulated an environmental management concept, “T-COMPASS,” that we share across our group as a whole.

As Toshiba Group's compass that provides guidelines for our environmental contribution, T-COMPASS defines four domains: responding to climate change and Energy issues (E); expanding the recycling of Natural resources (N); minimizing the amount of Water resources consumed (W); and minimizing the risks posed by chemical Substances (S).

Regarding energy and climate change issues, post-2020 international GHG reduction goals were discussed at COP21 held in Paris in December 2015. Also, the Fifth Report of the Intergovernmental Panel on Climate Change (IPCC) published in FY2014 defines the mitigation of climate change by reducing GHG emissions and adaptation to climate change as the most important strategies. According to the Fifth Report, different adaptation strategies will be needed at the local level. Also, there will be no adaptation strategies for some areas and not all risks can be alleviated. Accordingly, the social cost required for adaptation strategies is likely to be greater than the cost for mitigation strategies. This has led Toshiba Group to place high priority on mitigation, which aims to minimize climate change. Toshiba Group will contribute to reducing global GHG emissions by using our low-carbon technologies, energy-saving products and high-efficiency manufacturing. In addition, we will also contribute to adapting to climate change, including managing risks at our global business and production sites as well as preventing damage from torrential rain by using weather radar and rainwater drainage systems and producing independent hydrogen energy supply systems to prepare for the suspension of infrastructure functions.

In recent years, public attention has also been focused on water resource risks involved in climate change. Business activities in water- stressed regions require not only reducing water consumption, but also careful wastewater quality management as well as collaboration with local communities and residents. It is also known that policies for improving resource efficiency and chemical regulations in Europe have great global impact. We believe it is necessary to create business opportunities and also to exercise global leadership by adopting such international trends.

We are currently reviewing a new environmental action plan for the period from FY2016 to start a new stage of development as the world's foremost eco-company.

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Toward the Achievement of FY2015 Goals

This is the last fiscal year of the Fifth Environmental Action plan. We are working together as a group to achieve all goals for 22 items.

Greening of Products

We aim to achieve the highest level of environmental performance for all products we develop, thereby reducing environmental impact throughout product life cycles. In FY2014, our sales of Excellent ECPs, which achieve the highest level of environmental performance, increased to 2.34 trillion yen, exceeding the FY2015 goal. We will also continue to carry out our initiatives aimed at enhancing total environmental performance, including those for expanding the use of recycled plastics and reducing the use of PVC/BFRs.*

Greening by Technology

By developing low-carbon power sources, we will contribute to providing a stable power supply and mitigating climate change worldwide. In FY2014, the restart of operation of some nuclear power generation facilities was delayed. Consequently, we were unable to achieve our goals regarding reductions in CO2 emissions. Going forward, we will expand the use of renewable energy as well as improve the efficiency of thermal power generation.

Greening of Process

We will improve productivity and also simultaneously implement various measures to reduce environmental impact in order to achieve the world's most efficient manufacturing. In FY2014, we reduced greenhouse gas emissions to 3.02 million tons, greatly exceeding our goals, by implementing a variety of measures, including energy-saving investments and energy-saving diagnosis. In addition, we are making steady efforts toward reducing our environmental impact in different areas, such as amount of waste, total amount of chemical emissions and amount of water received per unit production. Despite these efforts, we were unable to achieve our goal regarding the percentage of final waste disposal. Therefore, we will improve and innovate our manufacturing processes from the perspective of the 3Rs (reuse, reduce and recycle) through activities such as implementing emissions reduction measures at domestic sites and developing know-how overseas.

Green Management

We will strive to strengthen the foundations of our environmental management by developing human resources to carry out environmental initiatives and by improving our environmental management systems on an ongoing basis. Through our biodiversity conservation initiative, we are contributing to the development of ecosystem networks in various regions through the creation of biotopes at our 66 global business and production sites. In addition, we will undertake a wide range of communication activities in order to build relationships of trust with our stakeholders.

In Conclusion

The goal envisioned in Environmental Vision 2050, of ensuring that all people can lead affluent lifestyles in harmony with the Earth, cannot be achieved by Toshiba Group alone. It also requires the understanding and support of various stakeholders. All members of Toshiba Group will share our group slogan, “Committed to People, Committed to the Future,” once again and work as a group to advance our environmental management. We will not only reduce our own environmental impact, but also contribute to society through providing a wide range of environmentally conscious products and services. It is our sincere desire that we may enjoy your ongoing support.

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PVC / BFR : Polyvinyl Chloride/Brominated Flame Retardants

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