CSR / Environment

Reducing Logistics-Related Environmental Impact

Reducing Logistics-Related Environmental Impact

  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent
Fiscal 2017 Objectives Fiscal 2017 Achievements Self-Evaluation*
Energy intensity: Improve by average of 1% each year
(average for fiscal 2013 to 2017)
Energy intensity: Improved by average of 11.1% each year
(average for fiscal 2013 to 2017)
★★★
Priority Objectives for Fiscal 2018 Energy intensity: Improve by average of 1% each year
(average for fiscal 2014 to 2018)

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 by improving transport and load efficiencies and by shifting to environmentally friendly modes of transport (modal shift)*1.

In fiscal 2017, Sharp Group greenhouse gas (GHG) emissions from shipping activities in Japan were 16 thousand tons (down 5% from the previous fiscal year). For Sharp Corporation, energy intensity was improved by an average of 11.1% for the most recent five years (fiscal 2013 to 2017). Sharp is steadily shifting 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 shipment of mobile phones, 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)

Proactive use of freight rail transport for mobile phone shipments

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 2017, GHG emissions from international transport by Sharp reached 186 thousand tons CO2, up 34% over the previous fiscal year, on the back of increased sales of LCD TVs in China.

Case Study

Reducing the Environmental Impact of Distribution (Indonesia)

At SSI, Sharp’s Indonesian production base, low-impact transportation initiatives are being undertaken. In order to export products and import components, SSI is using schedule management to minimize the number of trips that need to be made by trucks between the airport and the plant and increasing load efficiency by carrying the maximum volume of cargo each trip. Also, whereas SSI traditionally received almost all of the components it uses from Japan, China, and Singapore, it is now switching over to domestic procurement or procurement from suppliers in neighboring countries as a way of lessening environmental impact and distribution cost as well as contributing to the local economy.

Minimizing the number of truck trips

Component Procurement Switchover