Sony Ericsson Sustainabiliy Report 2011

2011 Sustainability Report Contents About Sony Ericsson About the report Financial results 1 2 3 4 5 6 7 8 10 12 14 16 18 19 20 21 Corporate A word from our President and Chief Executive Officer Governance People Vision in sustainability GreenHeartâ„ ¢ Contents The Life cycle approach Life cycle analysis Carbon footprint Recycling Substance control Supply chain Factory Health Community engagement 2011 Sustainability Report | Contents About Sony Ericsson Sony Ericsson is a 50:50 joint venture between Sony Corporation (â€Å"Sony†) and Telefonaktiebolaget LM Ericsson (â€Å"Ericsson†).In October 2011 it was announced by Sony and Ericsson that Sony will acquire Ericsson’s stake in the company and that Sony Ericsson will become a wholly-owned subsidiary of Sony. The transaction is expected to close in February, subject to customary closing conditions, including regulatory approvals, and Sony Ericsson will be renamed Sony Mobile Communications. Over the years Sony Ericsson has brought together the best communication technologies with superior entertainment user experiences to create its Xperiaâ„ ¢ line of the ‘most entertaining smartphones’ in the mobile handset industry.Building on the momentum of the previous year, Sony Ericsson continued to drive forward its smartphone strategy in 2011, shifting the business from feature phones to smartphones. The AndroidTM based smartphone XperiaTM portfolio remained at the heart of this strategy and will continue to serve as a cornerstone of the smartphone line-up as the company integrates fully with Sony. 2011 Sustainability Report | About Sony Ericsson 1 About Sony Ericsson About the reportSustainability is a central part of everything we do at Sony Ericsson, both internally and externally, from the development of our handsets to the recycling initiatives in our offices. With this is in mind we strive to be a leader in the industry working across the three main areas of sustainability à ¢â‚¬â€œ economic, environmental and social. We take a life cycle approach to each, addressing all aspects of a phone’s life cycle; from the design and supply to production, use and end of life. The Sony Ericsson Sustainability Report 2011 addresses these areas and presents them along with our life cycle approach.We have created the following life cycle graphic to showcase this approach in a simple and easy to understand way: Design Production Supply Unless otherwise stated, all information and data contained in this report pertains to activities undertaken from January 1, 2011 to December 31, 2011. The report examines aspects of Sony Ericsson’s activities all around the world, including our manufacturing facility, Beijing SE Potevio Mobile Communications Co. , Ltd. (BMC). The financial figures referred to in the report cover the period from January 1, 2011 to December 31, 2011.Sony Ericsson would like to thank all the people who have contributed to this report. Informa tion on our ongoing sustainability work can be found at www. sonyericsson. com/sustainability If you have any comments or suggestions on this report, we are happy to receive your feedback at [email  protected] com We welcome open dialogue with all stakeholders on our GreenHeartâ„ ¢ blog at http://blogs. sonyericsson. com/greenheart About the report Life Cycle Approach Use End of Life Forward-looking statementsThis report includes forward-looking statements, including statements reflecting management’s current views relating to the growth of the market, future market conditions, future events and expected operational and financial performance. The words â€Å"believe†, â€Å"expect†, â€Å"foresee†, â€Å"anticipate†, â€Å"assume†, â€Å"intend†, â€Å"may†, â€Å"could†, â€Å"plan†, â€Å"estimate†, â€Å"will†, â€Å"should†, â€Å"could†, â€Å"aim†, â€Å"target† , â€Å"might† or, in each case, their negative, and similar words are intended to help identify forward-looking statements. Forward looking statements may be found throughout this document.Although we believe that the expectations reflected in these and other forward-looking statements are reasonable, we cannot assure you that these expectations will materialise. Because forward-looking statements are based on assumptions, judgments and estimates, and are subject to risks and uncertainties, actual results could differ materially from those described or implied herein. Important factors that could affect whether and to what extent any of our forward-looking statements materialise include various factors that may be out of our control.We undertake no obligation to publicly update or revise any forward-looking statements or potential inaccuracies included in this report, whether as a result of new information or future events. 2 2011 Sustainability Report | About the report Fin ancial results 2011 was a year of transition for Sony Ericsson. The company saw fluctuations in its financial results, with Q2 earnings impacted by the Japan earthquake and Q4 earnings affected by intense competition and the challenging global macro-economic situation. For the fiscal year January 1, 2011 to December 1, 2011 total consolidated net sales during the period reached EUR 5,212 million. Income before taxes amounted to EUR -243 million, of which net restructuring costs were EUR 93 million, and net income after taxes was EUR -247 million. The number of units sold (excluding accessories) over the period was 34. 4 million units. In an effort to further increase efficiencies, a restructuring programme was launched in December. The restructuring costs for this programme are EUR 93 million. The quarterly breakdown of Sony Ericsson’s key figures is as follows: (Units sold in thousands, values in million Euros).Financial Results for 2011 1Q 2011 2Q 2011 3Q 2011 4Q 2011 Units sold (million units) Net sales (EUR million) NIBT (EUR million) Net income (EUR million) 8,142 1,145 15 11 7,644 1,193 -42 -50 9,549 1,586 31 0 9,036 1,288 -247 -207 Smartphones generated nearly 75% of the total sales in 2011, compared to nearly 50% in 2010. To date, Sony Ericsson has shipped a total of 28 million Xperiaâ„ ¢ smartphones since initial launch of its Androidâ„ ¢ based Xperiaâ„ ¢ range in 2010. 2011 Sustainability Report | Financial results 3 Financial results A word from our President and Chief Executive OfficerPresident and Chief Executive Officer 2011 was an eventful year for Sony Ericsson. We truly transitioned out of the feature phone business to become a smartphone company. Throughout the year we launched a range of exciting and innovative Android smartphones, including the pioneering gaming device Xperiaâ„ ¢ PLAY, the world’s first Playstation Certified smartphone. We also brought our GreenHeartâ„ ¢ credentials even further across our portf olio, striving to offer eco-friendlier Xperiaâ„ ¢ smartphones, chargers and accessories to our consumers, and we received the 2011 EISA Green Smartphone award for our Xperiaâ„ ¢ mini.However in March, we received the shocking news of the earthquake and tsunami in Japan. As a company with a Japanese heritage and major operations in the country, this tragedy affected us all personally and professionally, impacting our employees and supply chain. During these tragic events, I was personally moved by the courage, commitment and teamwork demonstrated by our staff in Japan and the Japanese people as a whole. Since then, we have been focused on learning from and adapting to the consequences of a natural disaster, ensuring that we actively manage risk should we experience similar events in the future.In October, Sony announced its intent to acquire Ericsson’s share in Sony Ericsson, making the mobile handset business a wholly-owned subsidiary of Sony. This integration provides us and our consumers with great opportunities as we become part of Sony’s broad platform of network-connected consumer electronics products, content and services. Sony Ericsson’s name will change and we will be known as Sony Mobile Communications. Throughout 2012 we will continue our shift to smartphones as we become part of Sony.Smartphones are a fundamental component of the Sony convergence strategy and the vision of an integrated user experience for all Sony consumers. The integration will also enable us to join forces and utilise Sony’s and our own strengths to create new initiatives in the area of sustainability. Together we will work hard to ensure that sustainability is a thread that runs all the way through our business via the life cycle approach, from the activities in our supply chain to our recycling initiatives. Thank you for your interest in our 2011 Sustainability Report and please continue to give us your feedback via our GreenHeart blog: http:// blogs. onyericsson. com/greenheart Bert Nordberg President and Chief Executive Officer Sony Ericsson Mobile Communications 4 2011 Sustainability Report | A word from our President and Chief Executive Officer Governance In October 2011, Sony announced its intent to acquire Ericsson’s 50 percent share in Sony Ericsson Mobile Communications, making the mobile handset business a wholly-owned subsidiary of Sony. The transaction is expected to close in February, subject to customary closing conditions, including regulatory approvals, and Sony Ericsson will be renamed Sony Mobile Communications.At Board level Sir Howard Stringer, Chairman, CEO and President of Sony Corporation, remained Chairman of the Board of Sony Ericsson. Hans Vestberg, President and CEO of Ericsson, remained Deputy Chairman of the Board of Sony Ericsson. Bert Nordberg remained President and CEO of Sony Ericsson and in July 2011, Yoshihisa (Bob) Ishida was appointed as Deputy CEO and Executive Vice President. Al ong with some of its global corporate functions in London, Sony Ericsson has sales and marketing operations in major regions of the world.Its product development and R&D activities sites are based in: †¢ Beijing, China †¢ Lund, Sweden †¢ Silicon Valley, United States †¢ Tokyo, Japan Sony Ericsson’s financial risk management is governed by a policy approved by the Sony Ericsson Board. The management of the risks is executed by a centralised treasury function and its principal role is to ensure appropriate financing, manage the liquidity, to secure effective cash-management and to manage the accounts receivable, as well as managing and controlling financial risk exposures in a manner consistent with underlying business risk and financial policy.How our organisation is structured President & CEO Corporate Functions Deputy CEO & EVP EVP, Sales & Marketing Technology Product Quality & Validation Operations Sales Marketing 2011 Sustainability Report | Governance 5 Governance Financial risk management People Sony Ericsson prides itself on the range of talented people who work for us and make us who we are as a company. Without our employees we would not remain an innovator in the industry so we would like to say a big thank you to all the people who work to bring our products to life and to the market.While 2011 was a year of change for our employees, with the announcement that Sony will acquire Ericsson’s stake in the company, it was also the beginning of a new start as we embark on a new journey within the Sony family. Total Headcount in 2011 5% 30% 38% 2011 Total 8056 China Germany Japan Other Sweden USA 14% 11% 2% Code of conduct and governance Sony Ericsson has a Corporate Social Responsibility Code in place to make sure that the human rights of all our employees are complied with and respected throughout the company.In addition, we have an HR governance structure in place to ensure that all local and international laws with res pect to employee and human rights are adhered to. Both the Corporate Social Responsibility Code and HR governance structure are run in close association along with employee representatives around the world. In addition, our HR team works directly with the global management team to bring to life these initiatives and ensure that Sony Ericsson is a preferred employer in the locations in which we operate. People 30% 2011 Gender Female Male 70% 5% 1% 16% 25% 2011 Age group 18-29 30-39 40-49 50-59 60+Global diversity We are a global organisation with our employees coming from over 70 countries across the world, so diversity in all its forms is embedded into everything we do. As such we appreciate and aim to nurture all the benefits that working in a global organisation can bring and we are committed to improving cultural and gender diversity within the business. 53% 4% Talent and performance management Talent management is extremely important to us in ensuring that we identify the right people for the right positions in our company and also hold onto our best and brightest employees.Our Talent Management Programme is specifically designed to help us do this and so far we have seen great success here. This programme works hand in hand with other initiatives such as our global leadership programme for particular leadership talents. All of our employees are also reviewed and appraised through a yearly performance management process and in 2011 we once again conducted our global employee engagement survey. 40% 2011 Nationality American 29% Chinese German Japanese Other 11% 14% 2% Swedish 6 2011 Sustainability Report | PeopleVision in sustainability Our vision: †¢ The resources consumed to make and use our products should not limit future generations to fulfil their goals and dreams †¢ Every Sony Ericsson product should be safe and not pose any threat to the environment throughout its full life cycle †¢ Our products should be produced in fair and sustaina ble working conditions The overall Sony Ericsson sustainability vision is that the value of our products and the experiences from them should outweigh the resources that they consume.We have a responsibility to our customers and end-users to consider and take into account the whole life cycle impact of our products. Our mission is that the production of our products, and indeed the products themselves, should have a minimal ecological footprint. This vision includes a better life for this generation and next generations to come, striving to become even better by reducing any environmental impact and lowering our use of resources. 2011 Sustainability Report | Vision in sustainability 7 Vision in sustainability Design Production Supply GreenHeart & Energy Use End of LifeGreenHeartâ„ ¢ For us it is not about making one green phone, it is about making all phones green. One of our key challenges is to raise the environmental awareness when people buy and use mobile phones. With this i n mind GreenHeartâ„ ¢ was created as a way of providing a comprehensive approach to building and communicating a more sustainable business. GreenHeartâ„ ¢ is all about giving consumers a greener choice. We are committed to lowering the overall environmental impact of our products by implementing green initiatives across the portfolio without compromising on features, functionality or design.From the very beginning, with the launch of the Sony Ericsson C901â„ ¢ GreenHeartâ„ ¢ in 2009, the intention was to make every Sony Ericsson phone and accessory a GreenHeartâ„ ¢ product. For us GreenHeartâ„ ¢ is not a competition to produce the ‘greenest’ products, it is an initiative to improve our entire portfolio and make a positive impact on the environment. We want to ensure that every Sony Ericsson phone and accessory includes GreenHeartâ„ ¢ credentials and, step-by-step we are working towards this goal. Design Production Supply GreenHeartâ„ ¢ In 2011 we implemented GreenHeartâ„ ¢ to our core analysis portfolio.With Xperiaâ„ ¢ neo, Xperiaâ„ ¢ neo V, Xperiaâ„ ¢ pro, Xperiaâ„ ¢ mini and Xperiaâ„ ¢ mini pro we offer more Use End of Life eco-friendly smartphones on the Androidâ„ ¢ platform. The back covers of the 2011 Xperiaâ„ ¢ Greenheartâ„ ¢ smartphones contain 50% – 70% recycled plastics, which Design Production helps to conserve scarce natural resources and reduce Supply the use of oil based virgin plastics. We have worked hard to use waterborne paints in as many GreenHeartâ„ ¢ Carbon footprint products as possible, which significantly lower emissions of Volatile Organic Compounds (VOC) compared to Use End of Life solvent-based paints.From the beginning of 2011, all of our new headsets and chargers were GreenHeartâ„ ¢ compliant. Our headsets use recycled plastics and our chargers fulfil Energy Star V requirements and have Design Production a no-load power consumption of ? 30 mW. Supply As a t estament to our GreenHeartâ„ ¢ credentials and our Recycling commitment to continually improve the environmental impact of our phones, during 2011 Sony Ericsson Use Xperiaâ„ ¢ mini received the EISA Green Smart Phone 2011 – 2012 award. Design Production Supply Life cycle End of Life Substance control Use End of LifeEnergy consumption is a hot topic amongst users of smart phones and that’s where the Sony Ericsson Xperiaâ„ ¢Design mini Production outperforms the direct competition, be it used as a mobile Supply phone, music machine, mobile internet device or even photo camera. Recycling by SIMS Mirec Recycling Solutions, CSR the world’s largest electrical and electronics recovery and recycling company, clearly shows that when it comes to Use chemical analyses, the Sony Ericsson Xperiaâ„ ¢ mini scores End of Life best also. Despite its compact size and weight, the Sony Ericsson Xperiaâ„ ¢ mini is a clear Green winner in the mobile Design phone market of today.Production http://www. eisa. eu/award/56/european-green-smartphone-2011-2012. html Our Use Supply factory End of Life Design Production Supply Health Use End of Life Design Production Supply 8 2011 Sustainability Report Community | GreenHeartâ„ ¢ engagement Use Charger rating ? 0. 03 W No-load power consumption score chart > 0. 03 to 0. 15 W > 0. 15 to 0. 25 W ? 0. 03 W We have also introduced environmentally conscious packaging concepts for our accessory products. During 2011, we replaced all our plastic blister packaging with other more energy efficient solutions.Also, we reduced the packaging material by up to 30% and are using up to 50% smaller boxes in comparison to 2010. Finally, to save natural resources we do not provide No stars extended paper manuals and CDs with our phones. By replacing paper manuals with an electronic in-phone version, we have saved approximately 350 tons of paper per million phones produced. This is equivalent to 13,000 trees and 75,000 cub ic meters of water. > 0. 250. 03 to 0. 15 W > to 0. 35 W > to 0. 5 W > 0. 350. 15 to 0. 25 W > 0. 5> 0. 25 to 0. 35 W W > 0. 35 to 0. 5 W No stars > 0. 5 W Mobile Device Charger Energy Mobile DeviceIPP project Phase 1 Voluntary Agreement EU and Industry IPP project Phase 1 Agreement EU and Industry Voluntary Manufacturer/Producer: Sony Ericsson Manufacturer/Producer: Sony Ericsson Model: EP-800 Model: No-load consumption: ? 30mW EP-300 No-load consumption: 30 mW Charger Energy Mobile Device Charger Energy Mobile Device Voluntary Agreement EU and Industry IPP Voluntary Phase 1 EU and Industry project Agreement Manufacturer/Producer: Sony Ericsson Manufacturer/Producer: Sony Ericsson Model: CST-15 Model: No-load consumption: CST-15 60 mW No-load consumption: 60 mW IPP project Phase 1Charger Energy Mobile Device Energy Mobile Device Charger Charger Energy Voluntary Agreement EU Voluntary Agreement EU and Industry Charger Energy and Industry Charger Energy IPP project Phase 1 IPP projec t Phase 1 Mobile Device Mobile Device Mobile Device Mobile Device Charger Energy Voluntary Agreement EU and Industry IPP project Phase 1 Charger Energy 2011 Sustainability Report | GreenHeartâ„ ¢ 9 GreenHeartâ„ ¢ Consumers have high expectations of our products and it is important that the packaging reflects the overall experience of the phone.But packaging is also key to achieving a positive environmental impact and we have optimised the packaging of our products to make them more eco-friendly. We only use recyclable packaging materials and all packaging parts can be separated to facilitate recycling. Minimised packaging allows us to send more phones within each shipment, cutting down CO2 from transportation and saving non-renewable fuels. All our phone packaging boxes are made from paper and we are able to trace the origin of our virgin paper material. Whenever technically possible we use ink and varnish which is solvent-free and vegetable oil based ink.Design Production Sup ply Life cycle analysis Use End of Life Life cycle analysis Working with the life cycle perspective – our products When we assess the impact our products have on the environment, we look at the whole life cycle. The journey begins with the sourcing of materials, component manufacturing and product assembly. The products are then shipped to customers around the world and reach the end of their journey in the hands of consumers. With the availability of software updates, the lifetime of the phone can be prolonged but eventually a consumer will more than likely purchase a new handset.As a responsible consumer, he or she will recycle the old phone so that the materials can be used to make new products. The life cycle description above, gives a very brief introduction to what needs to be considered when analysing the impact that a product has on the environment. Key factors in this process include substance control, limiting greenhouse gas emissions and increasing recycling but it is also about people and having a positive social impact on the world. Sony Ericsson works hard to address all of these elements and to contribute to society through community engagement activities.Design Production Supply carbon footprint for each phase is measured or estimated footprint based on common behaviour and practices. All of these figures are added together and the total Use represents the overall environmental impact of the product. At Sony Ericsson we first completed a full life cycle analysis (LCA) Design in 2008 on a W890*. That work resulted in an LCA model Production that we still use internally today to measure and keep track of the carbon footprint of our products. Carbon End of Life SupplyLife cycle analysis Life cycle assessment of our phones One way of measuring the impact a product has on the environment is to calculate its carbon footprint. This means that each phase of the product’s life is analysed and a The LCA that we conduct on our products is ba sed on a three year life expectancy. As shown in the figures, the Use End of Life biggest impact area is the component manufacturing. This is because the manufacturing of electronic components, especially integrated circuits and displays, is very energy intensive.The second largest impact isDesign the Production user phase which includes the energy that the end user consumes to charge the phone. As you can see, the user Supply Substance phase for W890 creates a slightly larger impact than for control Xperiaâ„ ¢ arc. The difference is small however and the reason it isn’t greater is that even though we have worked hard to Use End of Life reduce the energy consumption of our chargers, the fact that a smartphone has a greater functionality increases its energy consumption.For W890, the transportation of the Design components and the phones has the third biggest impact, Production while for Xperiaâ„ ¢ arc, the third biggest impact area is the Supply raw material extraction. The reason that the transportation impact is lower for Xperiaâ„ ¢ arc is largely due CSR to Sony Ericsson’s improvement work with reducing packaging and removing materials such as CDs and extended Use End of Life paper manuals. Design Production Supply Recycling Our factory Use End of Life Design Production Supply Health Use End of Life Design Production SupplyCommunity engagement Use End of Life *In a formal Critical Review Panel carried out in 2010 at The Royal Institute of Technology (KTH) in Sweden and chaired by The Swedish Environmental Research Institute (IVL), it was found that the overall quality and review process for the Sony Ericsson W890 life cycle analysis was excellent and in full compliance with the ISO 14040 series standards. 10 2011 Sustainability Report | Life cycle analysis Here are some examples to give an indication of how the LCA and the carbon footprint differ between some Sony Ericsson products.Results cannot be directly compared to other manufact urers as there is currently no common model used to calculate them. †¢ Xperiaâ„ ¢ arc: 31kg CO2 equivalents †¢ Xperiaâ„ ¢ mini: 28kg CO2 equivalents †¢ Sony Ericsson txt: 19kg CO2 equivalents †¢ Sony Ericsson W890: 24kg CO2 equivalents The figures above clearly show that high-end phones like Xperiaâ„ ¢ arc generally have a higher carbon footprint than low end phones such as Sony Ericsson txt or the W890. Smartphones are high end phones, and as we commit to expanding our smartphone range we realise that addressing the carbon footprint of smartphones is going to be a growing challenge for us.In the short term, this is resulting in an increased environmental impact, however we are keeping track of this and are working to find sustainable solutions. W890 LCA result 2008 16% 8% 2% 4% Raw material extraction Component manufacture Transportation Sony Ericsson Activities 14% 56% Phone assembly, testing and warehousing Usage Xperiaâ„ ¢ arc LCA result 2011 2% 3 % 8% 15% 9% Raw material extraction Component manufacture Transportation Sony Ericsson Activities Phone assembly, testing and warehousing Usage Our goalIn 2008, Sony Ericsson set a goal to reduce the greenhouse gas emissions from the full life cycle of our products by 15% by 2015, based on 2008 levels. In 2008, the total emissions of carbon dioxide equivalents were 2,036,165 tonnes. In 2011 that number was reduced to 1,018,400 tonnes CO2 equivalents, equalling a reduction of 50%. As these absolute figures correlate to sales it is important to continue to focus on reducing the carbon emissions for each individual product to reach our long term goal. 63% 2011 Sustainability Report | Life cycle analysis 11 Life cycle analysisDesign Production Supply Carbon footprint Use End of Life Carbon footprint Our carbon footprint As we have explained in the previous LCA section, one of the tools we use to measure the impact Sony Ericsson’s products have on the environment is by calculating their carbon footprint. We also use this methodology for our business activities which includes keeping track of and reporting our direct and indirect greenhouse gas emissions according to the Greenhouse Gas Protocol (GHG Protocol). Design Production Supply Our goal Recycling End of Life Carbon footprintThe GHG Protocol defines three Scopes of how companies should report their greenhouse gas emissions. Scope 1 is for direct greenhouse gas emissions that come from sources that the company owns or controls. Scope 2 is for indirect greenhouse gas emissions from purchased electricity which includes purchased electricity, steam, heating and cooling. Scope 3 is optional and is used for reporting other big indirect greenhouse gas emissions. Under Scope 1, Sony Ericsson reports fugitive greenhouse gas emissions from air conditioning equipment and emissions from employee travel in company ehicles. Under Scope 2 we report greenhouse gas emissions from purchased electricity, steam, heating an d cooling for our manufacturing site and offices. We also choose to report Scope 3, under which we report greenhouse gas emissions from business travel and logistics. In 2008, Sony Ericsson set the goal to reduce the Use greenhouse gas emissions from our internal activities by 20% by 2015, using the 2008 levels as the baseline. The internal activities are defined as Scope 1 and 2 emissions Design and the emissions from business travel.In 2010 we had Production reduced our greenhouse gas emissions by approximately 11%. In 2011, we are at approximately the same level, Substance 10% compared to the baseline, but we are still confident control in meeting our 2015 target. Supply Use End of Life As seen in the tables, emissions from logistics and business travel decreased over 2011, while emissions from manufacturing and Sony Ericsson offices, Scopes Design 1 and 2, remain about the same. The drop in the logistics Production figures is partly due to Sony Ericsson’s transformation t o Supply a smartphone only business developing fewer low-end phones.To reach our 2015 target, we need to reduce our CSR Scope 1 and Scope 2 emissions as well as our business travel emissions. We are currently half way to meeting our Use target and ready to take on the challenge of further reducing End of Life our emissions. Over the course of 2011 further actions were taken and initiatives were put in place to achieve this Design target. A brief summary of these can be found in the paragraph Production Supply below. We are committed to continue these in 2012 and believe that they will help us reach our target. OurDuring 2011 we worked with our transport providers to find ways to reduce our carbon emissions for Use logistics, as well End of Life as initiating a site review project to conduct environmental reviews of our office sites. The aim is to identify improvement areas and to make each site more sustainable. Design Production Going into 2012 we will continue this work and strive to lessen the environmental impact from all of our offices and Supply transportation activities. factory Health Renewable energy and green buildings Currently Sony Ericsson uses 100% renewable energy for our sites in Sweden.Lund, Sweden, is Sony Ericsson’s biggest site and the renewable energy used there and Design at our other Swedish site totals approximately 26% of Production all the electricity used by Sony Ericsson. The renewable electricity is certified by the Swedish Society for Nature Community Conservation and is made exclusively from renewable engagement energy sources, such as hydropower and power from biomass. Sony Ericsson strongly believes in sustainability Use and this is reflected when we choose our office buildings and was a key consideration when Sony Ericsson moved into a new building in Atlanta, USA.One of the criteria in the search for the building was that it should have a Leadership in Energy and Environmental Design (LEED) certification. The building that was chosen not only has a LEED Gold certificate which is the second highest LEED certification, but Sony Ericsson also made sure to certify the tenant fit-out which received a LEED Gold certificate. Use End of Life Supply End of Life 12 2011 Sustainability Report | Carbon footprint Carbon footprint figures kg CO2 Offices and In-house manufacturing Business travel Logistics TotalScope 3 TOTAL (Scope 1, 2 & 3) Scope 1 Scope 2 Scope 3 Scope 3 2008 573,431 36,366,259 26,378,287 189,643,325 216,021,612 252,961,302 2009 1,098,395 33,535,653 19,705,217 120,683,029 140,388,246 175,022,294 2010 564,369 33,009,027 22,569,047 89,388,498 111,957,545 145,530,941 2011 759,230 33,589,827 22,447,594 56,561,422 79,009,016 113,358,074 kg CO2 TOTAL of SE internal activities (Scope 1, 2, 3 excl. logistics) Yearly reduction result (%) of SE internal activities (Scope 1, 2, 3 excl. logistics) Reduction result (%) of SE internal activities against the target baseline 2008 (Scope 1, 2, 3 excl.Logistic s) 2008 63,317,977 N/A N/A 2009 54,339,265 -14% -14% 2010 56,142,443 3% -11% 2011 56,796,651 1% -10% Renewable energy For sites Of all purchased electricity 2007 2008 2009 2010 2011 38% 42% 44% 53% 47% 23% 25% 29% 31% 26% Total absolute results Scope 1 and 2 (In-house manufacturing + Sony Ericsson offices) kg CO2 – absolute 2008 – 2009 2008 – 2010 2010 – 2011 2008 – 2011 -6% -9% 2% -7% Total absolute results Scope 1, 2 & 3 (manufacturing, Sony Ericsson offices, business travel, logistics) kg CO2 – absolute 2008 – 2009 2008 – 2010 2010 – 2011 2008 – 2011 31% -42% -22% -55% Scope 1 and 2 In-house manfacturing kg CO2 – absolute 2008 – 2009 2008 – 2010 2010 – 2011 2008 – 2011 Sony Ericsson offices kg CO2 – absolute 2008 – 2009 2008 – 2010 2010 – 2011 2008 – 2011 -1% -13% 8% -6% -9% -7% -1% -8% Scope 3 Business travel kg CO2 – absolute 2008 â €“ 2009 2008 – 2010 2010 – 2011 2008 – 2011 Logistics kg CO2 – absolute 2008 – 2009 2008 – 2010 2010 – 2011 2008 – 2011 -36% -53% -37% -70% -25% -14% -1% -15% NOTE: The 2008 (baseline), 2009 and 2010 data has been updated as a result of error corrections and better data collection.This explains the increased figures for the Sony Ericsson offices and the decreased figures for renewable energy, compared to the results presented in earlier reports. 2011 Sustainability Report | Carbon footprint 13 Carbon footprint Design Production Supply Recycling Use End of Life Recycling Too precious to throw away Our phones remain valuable assets even after the end of their useful life, thanks to the materials contained within them. Those materials, when used again, reduce the need for mining and further depleting the Earth’s resources.We have been helping to facilitate this recycling journey since 2008. 0 20 40 Design Production Sup ply Substance Number of countries covered bycontrol recycling information 2009 – 2011 Use 60 80 100 End of Life Design Supply January 2009 January 2010 January 2011 December 2011 6 8 8 9 29 30 32 Use Production59 Why recycle? When not properly taken care of, waste can have negative impacts on both human health and the environment. However, there is a way to avoid these negative effects as well as to recover valuable materials (especially metals) through controlled recycling.Recycling can significantly reduce the demand for virgin metals and contribute to reducing greenhouse gas emissions from the mining and primary production of precious metals – both very CO2 intensive activities. Additionally, by reducing the need for landfills, recycling makes it possible to use the land in a better way so it does not become redundant â€Å"wasteland†. 58 55 CSR End of Life Recycling General information Third party system Sony Ericsson’s own systems Production Supply D esignOur We aim to increase direct collection from end users, with a factory Recycling facts & figures Although mobile phones hold big potential for material and value recovery at their end-of-life, they are rarely recycled. Sony Ericsson set out to change this with our Global Take-Back programme, which we launched in 2008. The starting point was establishing the Global Environmental Warranty guaranteeing environmentally sound recycling of phones collected by us. In the next stage we established and increased the number of recycling collection schemes.However, we soon recognised that to better support our consumers we also needed to raise awareness of recycling in general and of our Global Take-Back programme. To achieve this we set out to provide readily available and easy-to-understand information on local recycling possibilities: www. sonyericsson. com/recycle. We also provide recycling information with our products, and all of our call centre agents are trained to answer recycli ng-related questions. We have come a long way since we started this initiative with only six countries.Today we provide information on recycling schemes in 41 countries, nine of which are run by or in co-operation with Sony Ericsson with approximately 500 collection and information points or pre-paid collection initiatives. In the other 32 countries we support and direct our users to industry, municipality and privately owned recycling schemes. focus on countries that currently do not have any recycling Use support initiatives in place. One of our activities, which began in 2011, aims to increase recycling collection through free postal return.Production Since we started the recycling collection initiative, the volumes processed by Sony Ericsson have grown from approximately 800,000 in 2009 to over one million in 2011. Design End of Life Supply Health Number of phones collected Use by Sony Ericsson 2009 – 2011 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 Production Total Design End of Life annually Community engagement Total accumulated Supply Use End of Life It is important to note that these volumes constitute only a fraction of all collected Sony Ericsson phones.The total figure of all recycled Sony Ericsson phones includes the high volume of phones handled within external recycling systems, by industry and charities, partially with Sony Ericsson’s support. Of course in order to successfully drive recycling, actions must start at home. Thanks to company-wide efforts, recycling has become part of our employees’ everyday lives and way of thinking. Internally at Sony Ericsson offices, we provide collection bins and have processes in place to allow our employees to easily recycle both phones and accessories. 14 2011 Sustainability Report | Recycling Made to be recycledOur phones are designed to last and they undergo rigorous quality tests before being released to the market, but at some point all phones must reach the end of their life. All collected devices, whether from our customers or our employees, are processed by our designated recycling partners, who have been carefully chosen on the basis of the security and control of handled material and their environmental credentials. The recycling process, which was co-designed by Sony Ericsson with our recycling partners, delivers not only highly effective material and components recovery but also detailed reporting. mproper disposal of electronic waste in developing countries. We do not refurbish collected products as we believe that end-of-life devices are best used for material and components recovery. We encourage consumers to recycle Sony Ericsson phones wherever possible. Another challenge is how to measure the volumes of phones captured and recycled in systems other than our own. This is caused by the fact that most of these schemes collect mobile phones in a mixed stream of small electronics and IT equipment. We are working with the schemes where we participate to address this issue.Challenges Only an estimated 3% of all obsolete phones will be recycled, the rest will end up, at least initially, in storage. Currently recycling has strong competition – there are many companies buying mobile phones for refurbishing and re-sale. Revenue from selling repaired end-of-life phones generates at least ten times their recycling value; this is driving the sales of an estimated several hundred million refurbished phones a year. While we support the principle of reuse, we are concerned with the quality and safety of these products, as well as with issues aroundWhat can be reused? †¢ The phone housing is mostly made of high grade plastic or metal alloys, both of these types of materials can be recycled into various products †¢ Some parts and components, such as LCDs or cameras, can be reused in other electronic products †¢ Gold, silver, platinum and copper can be recovered through smelting processes and reused in electronic products or for jewellery 2011 Sustainability Report | Recycling 15 Recycling Design Production Supply Substance control Use End of Life Substance control Safe and secure materials in our productsSony Ericsson has a strong commitment to manufacture products with materials and substances that are safe and secure to our common earth and following generations. Sony Ericsson works to reduce the impact of our products, through the whole life cycle. We recognise the importance of ensuring that chemicals used in our manufacturing processes are controlled, monitored and not released in a way that has a negative impact on the environment. Sony Ericsson strives to continuously identify and develop alternatives to potentially hazardous and critical substances, see figure below.We are committed to continuously improve our environmental impact and this is mirrored in our daily work with sustainable work-flows that are aimed at creating a sustainable innovative leadership. Continuo us improvement Sustainable innovative leadership Design Production Supply CSR â€Å"Hazardous Chemicals Substitution and Elimination† at an event in Shenzhen, China organised by Greenpeace East Asia, Chemsec and BSR. Use End of Life Substance control â€Å"Sony Ericsson also reached out to manufacturers from a wide range of industries at a business seminar Design Production in Shenzhen, China, co-organised by Greenpeace East Asia, ChemSec and BSR.At the seminar, Sony Ericsson Supply Our introduced its phase-out programs and material factory declaration systems. It is important that experience gained from one industry on hazardous substance Use End of Life phase-out can be passed on to other industries that are facing similar challenges. It will help inspire and facilitate the establishment of similar programs within Design other sectors†, Tianjie Ma, Head of Toxics Campaign, Production Greenpeace East Asia Supply Step2 Review by 3rd party on the performance Publicly di sclose report & the goals fulfilment on progress towards goals Step4Step3 Sony Ericsson’s environmental working procedures have Health been recognised by the United Nations Environment Programme2 (UNEP) as well as a number of authorities and Use non-governmental organisations. In 2011, Sony Ericsson was engaged in the UNEP work within the Strategic Approach to International Chemicals Management3 (SAICM) and Chemicals in Products (CiP) to reduceDesign Production the use of substances of concern in products. Compliance verification process End of Life Supply Publicly share internal guidelines & set goals Step1 Full Disclosure Materials Declarations Chemical AnalysisSony Ericsson has engaged Environmental Heroes, such as our environmental coordinators, throughout the organisation to ensure that we consistently meet the high requirements we have set ourselves. They also make sure that our partners and suppliers fulfil our tough requirements, and drive the process of replacing haz ardous and critical substances. One of the key documents we highlight to our partners, suppliers, factories and customers is the Sony Ericsson List of Banned and Restricted Substances. This document, which goes beyond compulsory legal regulations, sets out our environmental targets for replacing banned and restricted substances.The document is continuously updated and new substances added as required. For every phone model we put on the market a specific Environmental Declaration is available for download from our website. These documents detail various aspects of each phone including material content, energy consumption, battery, packaging and recycling information. Sony Ericsson is constantly working with non-governmental organisations, industry bodies and relevant authorities to identify areas where we can lower the environmental impact of our products.An example of this pro-active collaboration was shown when we joined a seminar on the topic 16 Identifying materials and substanc es in the supply chain Our Environmental Design Review process is intended to ensure that we meet legal and internal requirements to prevent the distribution of hazardous and critical substances in our products. This is further illustrated in the pictures above and below. In 2008 we launched our Compliance Check System, a database which contains information from external sources and suppliers that is linked to Sony Ericsson’s product life management system.Full material declarations are required from suppliers to meet industry standard IPC-1752. It is through this mechanism that all phones and accessories are thoroughly screened. They are also tested by third-party laboratories for chemical content before going to market. 2011 Sustainability Report | Substance control Environmental Design Review Environmental Declaration Establish internal chemical policy guidelines & procedures The Sony Ericsson Lists of banned and Restricted Substances Environmental Declaration on every Son y Ericsson phoneCommunity engagement Customer Requirements, Regulation, Strategies, Goals and Targets Use Banned and Restricted Substance List End of Life Design for Environment Substance control procedures SEMC request CuO Al 2 O3 O(CC)C=O 26. 5 % 89-27-6 Fe 3. 89 % 0. 56 % Pass Environmental declaration By clearly articulating our requirements to our first tier suppliers, Sony Ericsson creates a system whereby our suppliers and their suppliers systematically phase out hazardous and critical substances. Phase out of critical substancesBFR’s Phase out in boards, casing, cables Lead Phase out PVC Phase out Beryllium Phase out Organic bromine & chlorine compounds ROHS Compliant 2005 REACH Candidate Substance Substance control control Sony Ericsson is one step ahead Sony Ericsson products are compliant with applicable laws and regulations including the EU Restriction of Hazardous Substances (RoHS and RoHS 2) and REACH (Registration, Evaluation and Authorisation of Chemicals). We believe the electronics industry has a responsibility to proactively find substitutes to replace brominated flame retardants (BFR) and other critical halogens, PVC and critical phthalates.Sony Ericsson started phasing out BFR’s early in 2000 and our new products for 2012 and onwards will be BFR free. All new Sony Ericsson products are phthalate free, with regard to those phthalates targeted and regulated by the EU, but we are striving to go beyond the legal requirements and aim to phase out all phthalates from our products soon. The next step in our phase out programme is to work to remove all organic brominated and chlorine compounds in our products. ALL phthalates Phase outAntimony and tin organics Phase out 96 06 07 08 09 10 11†¦ Sony Ericsson has been successful in phasing out critical substances. Today we are proud to say that we are free from brominated flame retardants (BFR), PVC, beryllium and for part of our portfolio we are also free of antimony, phthalates an d organic bromine and chlorine compounds. The phase out procedure can be seen in the figure above. 2 3 http://www. unep. org SAICM was developed by a multi-stakeholder and multi-sectoral Preparatory Committee.It supports the achievement of the goal agreed at the 2002 Johannesburg World Summit on Sustainable Development of ensuring that, by the year 2020, chemicals are produced and used in ways that minimize significant adverse impacts on the environment and human health. CiP which is driven by SAICM, aims to ensure , that information is available and transmitted through the production chain for the benefit of multiple stakeholders. 2011 Sustainability Report | Substance control 17 Substance control CuO 125-63-2 87-32-8 Full material declaration Au 1. 2 % 109-94-4 Al 1$ 3 + 4 2 Compliance check (RoHS, Reach) Design Production Supply CSR Use End of Life Supply chain We are continuously evolving our approach towards supply chain corporate social responsibility Sony Ericsson believes in respect for human rights and the ethical treatment of all employees, both internally and in our wider supply chain, because we think that everybody in the value chain has the same rights and responsibilities. Our Supplier Social Responsibility Code (Supplier Code) is in place to ensure that our values and principles are driven through the entire supply chain.From our work with suppliers we have learned that both a thorough understanding by suppliers and long term engagement by Sony Ericsson are required in order to build up continuous positive changes in the supply chain. In 2011, Sony Ericsson continued with our strategy of social responsibility engagement by carrying out a number of detailed assessments across our suppliers’ sites by internal CSR specialists. In total, 77 visits were made to 41 sites around the world including component suppliers and production sites.Of the suppliers we visited in 2011 about 76% received a second visit or more, indicating our efforts and f ocus in providing sufficient education on our social responsibility requirements and on building a relationship of trust with our suppliers. The number of CSR visits and percentage of re-visits 2009 Number of Visits % of re-visit 36 75% 2010 47 74% 2011 77 76% Design Production Supply Concerns about raw materials Our factory Sony Ericsson shares concerns surrounding raw material Use End of Life and mineral extraction activities in the Democratic Republic of the Congo (DRC) and its neighbouring countries.Sony Ericsson is committed to finding effective solutions to Design concerns surrounding raw material extractions and our Production approach to these issues is twofold. Not only do we Supply assess our first tier suppliers for their understanding of Health and conformance with our Supplier Social Responsibility Code, but also we work with the wider industry to support initiatives such as the Conflict Free Smelter program Use End of Life developed by the Global e-Sustainability Initi ative (GeSI) and Electronics Industry Citizenship Coalition (EICC).In 2011, we participated in a number of discussions held Design Production by the GeSI/EICC Supply Chain/Extractives working group and by the Organisation for Economic Co-operation and Supply Community Development (OECD) on the OECD Due Diligence Guidance for Responsible Supply Chains of Mineralsengagement from ConflictAffected and High-Risk Areas to help tackle this issue. Use End of Life Supply chain The more suppliers understand our requirements, the more we start to see positive improvements from suppliers themselves.In 2011 for the first time, the category of ‘Corporate Social Responsibility’ became a part of the Supplier Awards given to suppliers for their performance over the year. The supplier, who was awarded in the Corporate Social Responsibility category, was chosen due to its clear support of and dedication to supplier responsibility during 2011. In order to strengthen the internal knowledge of our social responsibility policies and requirements within our supply chain, Sony Ericsson has developed an internal online training course.The aim of this course is to provide our employees with the opportunity to learn about our essential values in this area and raise awareness of the practices they may encounter at our supplier sites. The contents of the training include information on fair working conditions, health and safety, environmental management and anti-corruption. 18 2011 Sustainability Report | Supply chain Design Production Supply Our factory Use End of Life Our factory Beijing SE Potevio Mobile Communications Co. , Ltd. is Sony Ericsson’s main production and distribution centre and only in-house manufacturing facility.Beijing SE Potevio Mobile Communications Co. , Ltd. (BMC) is jointly owned by Sony Ericsson and local partners China Potevio and Nanjing Panda Electronics Group, two of the largest companies in the Chinese electronics telecommunications indust ry. Design Production Supply Our carbon footprint figures for manufacturing Health for Sony Ericsson as a whole reflect the overall reduction in electricity and steam consumption. However, an increasingly Use End of Life important factor and resource is water and its consumption. The table below shows how BMC has lowered its water consumption between 2008 and 2011.Design Production Factory Water Consumption (ton) Compared to 2008 (%) Compared to 2009 (%) Compared to 2010 (%) 2008 156,713 N/A N/A N/A 2009 129,940 -17% N/A N/A We take environmental, health and safety management very seriously. As such, we have four different management systems with integrated processes and procedures to, among other things, manage documents, control internal audits, ensure compliance with regulations, set corrective actions and put in place continuous improvement activities for environmental, health and safety management.In this way we ensure that environmental and social factors are an integrated par t of our daily operations and business practices at the factory. Sony Ericsson requires all manufacturing sites, including the BMC facility, and suppliers to have an Environmental Management System such as ISO 14001 or equivalent and a Health and Safety Management System such as OHSAS 18001 or equivalent in place. BMC has been certified for ISO 14001 since 1999 and for OHSAS 18001 since 2009 by Det Norske Veritas (DNV). All of our activities are audited and certified by Det Norske Veritas (DNV) in accordance with ISO 9001:2008 (Quality Management Systems).Twice a year, BMC internally reviews and evaluates its compliance to all applicable laws and regulations according to its EHS Management Systems, additionally all environmental aspects and health and safety hazards are also identified and assessed to evaluate their impact in normal and potential emergency situations. According to the risk value, significant hazards are identified and activities for reducing and controlling their im pact are worked out. BMC also receives a periodical EHS audit twice a year by the external party DNV. 2% N/A -7% -8% CSR activitiesOur factory is regularly assessed against our Supplier Social Responsibility Code for labour, health and safety aspects. As part of and to complement this assessment, BMC initiated its first self-assessment in 2008 and now updates yearly. The last update was carried out in Q4 2011. Since 2008 BMC has been subscribed to the ElectronicTool for Accountable Supply Chains (E-TASC), to easily share Sony Ericsson’s CSR status in its factory operations with operators. E-TASC requests information on environmental practices, health and safety standards, ethical conduct and human rights. 2011 Sustainability Report | Our factory 9 Our factory Environmental, Health & Safety (EHS) Management Systems Community 132,340 121,246 engagement Use -16% 2010 2011 Supply -23% End of Life Design Production Supply Health Use End of Life Health Electromagnetic fields and Sp ecific Absorption Rates (SAR) At Sony Ericsson we acknowledge community concerns around electromagnetic fields and Specific Absorption Rates and the potential public health effects. We support and monitor the independent research and investigations conducted by the World Health Organisation (WHO). However, to protect the independence of the studies we are not actively involved in them.Some people are concerned that radio waves (electromagnetic fields, also known as EMF) from mobile phones and base stations may cause health problems. The overwhelming weight of scientific evidence, however, shows no association. The Specific Absorption Rate (SAR) is the unit of measurement employed in the exposure guidelines for mobile phones and other specified radio equipment. Before Sony Ericsson releases a mobile phone model to the market we conduct tests to ensure that the handset complies with the SAR limit established by the relevant authorities.All information on SAR and Sony Ericsson products can be found on our website including reported SAR levels for each of our handsets. Please visit www. sonyericsson. com/health for more information. Design Production Supply Community engagement Use End of Life Health Nickel Following concerns raised around the potential risk of nickel causing irritation for people with sensitive skin, Sony Ericsson has removed nickel from contact surfaces. In 2008, Sony Ericsson prohibited nickel in parts that come into contact with the user during normal use. Our commitment to you All of our products have complete Environmental Declarations.These detail the material content of each Sony Ericsson device and are available for download from our website: www. sonyericsson. com/support 20 2011 Sustainability Report | Health Community engagement Response to the disaster in Japan On March 11 2011, an earthquake measuring 9. 0 on the Richter scale which then also generated a 30m tsunami hit the Tohoku region of Japan. The fatalities reached 15,000 with m ore than 3,000 missing. With our Japanese heritage it was a great shock for Sony Ericsson employees to experience the earthquake in Tokyo and then hear the news around the world.However, as soon the news spread, our employees galvanised to offer donations, volunteer their time and contribute in any way possible to support the disaster relief effort. Matching gifts to Red Cross Japan Immediately after the disaster, Sony Ericsson Japan participated in Sony’s matching gifts program for the Disaster Relief Fund for Victims of the Great Tohoku Earthquake. In just three weeks Sony Ericsson Japan raised over 5. 6 million JPY. Together with the amount collected from Sony employees in Japan, funds raised were donated to the Central Community Chest of Japan and delivered directly to the disaster victims.Outside of Japan, Sony Ericsson donated 75,000 EUR to the Japanese Red Cross. This lump sum donation was in addition to donations made by our parent companies Sony and Ericsson to a num ber of local charities. Playing tennis to raise funds for Japan disaster relief At the Sony Ericsson Open in Miami, Florida, USA in March, Sony Ericsson participated in a three-way fund raising initiative for the victims of the Japan earthquake and tsunami disaster, dubbed â€Å"Tennis for Japan†, featuring the stars of the Women’s Tennis Association (WTA) and the Association of Tennis Professionals (ATP) World Tour.Through collecting donations from the audience, sale of special edition T-shirts and a charity gala dinner, more than 300,000 USD was raised for the Japanese Red Cross, including a 50,000 USD contribution from Sony Ericsson. Restart Japan project Throughout the course of 2011, Sony Ericsson Japan continuously encouraged various charity programs internally and externally to support the Tohoku earthquake victims through the Restart Japan Fund. The Fund was established by Save the Children Japan (SCJ) in cooperation with Sony Corporation to support children â €“ the foundations of Japan’s future – who suffered as a result of the disaster.As of November 2011, Sony Ericsson Japan had raised over 6. 2 million JPY in total for the Restart Japan Fund. To raise donations, Sony Ericsson Japan held internal employee events as well as encouraging customers to support activities. Four kinds of special mobile phone straps were designed to inspire the recovery of Japan. The straps, designed by two designers who live in the Miyagi prefecture where the earthquake and tsunami hit, were presented to our customers who purchased accessory products from the Sony Ericsson Store and added a donation with their purchase.All the donations were then fully donated to the Restart Japan Fund. 2011 Sustainability Report | Community engagement 21 Community engagement 10th anniversary celebrations around the world Community engagement In October 2011, Sony Ericsson celebrated its 10th year as a joint venture between Sony Corporation and Ericsson and each regional office was tasked with planning an innovative way to celebrate the 10th anniversary. In the Asia Pacific region employees chose to celebrate Sony Ericsson’s 10th nniversary by giving back to the community. You can read more about what our employees in Indonesia, Malaysia and Singapore did below: Indonesia The team in Indonesia put together a charity program for a school for under-privileged children in the Depok suburb of Jakarta. This included classroom makeovers, book cases, school supplies, art and craft materials and healthy snacks. The team also spent a day with the children, taking part in various games, entertainment and fun activities.Singapore In Singapore, on September 30, 2011 39 Sony Ericsson volunteers spent a fun-filled day with 249 students and 62 staff at the LEE KONG CHIAN GARDENS SCHOOL (LGS), one of MIND’s special education schools. With a history that dates back to 1970, LGS is committed to teach, equip and train intellectually disabl ed pupils, enabling them to have a productive and purposeful life. The team organised a children’s carnival for the students at LSG with a huge range of activities including a bouncy castle, tug-of-war, various games stalls and soccer games.At the end of the carnival, each child was presented with a goodie bag to remember the day by. Engaging in local schools China – Hope School Project Over the past few years, Sony Ericsson has worked to promote charity in China, with a particular focus on the development of education through the Hope School project. In 2009 and 2010, Sony Ericsson funded the building of two Hope Primary Schools, one in the Sichuan Province and one in the Shanxi Province. In 2011, we continued to support the Hope School project by funding another Hope School in the Hebei Province.Malaysia Employees in Malaysia partnered with KSK, a charitable non-profit organisation set up to feed the needy and homeless in urban Kuala Lumpur. Besides contributing as a sponsor, the team also spent a day as volunteers preparing and packing food in the kitchen and then sending the food out to the slum areas in the city. In addition, employees from Sony Ericsson China visited the Chan Lin Township Primary School in Cang Xi County in the Sichuan Province for a donation ceremony and to present the students with invitation letters to participate in the 31st Beijing Marathon.The marathon was held on October 16, 2011 with 10 students from Sony Ericsson Hope Schools in rural areas of Sichuan, Qinghai, and Shanxi provinces and Sony Ericsson employees also participating. All students and Sony Ericsson employees finished their target routes successfully and afterwards, the students were invited to stay with Sony Ericsson emplo