CEO’s Statement

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Summary of the Company’s Business Environmental Policy

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Environmental Management Systems

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Environmental Objectives and Achievements --------------------------------- -- 6 Environmental Impacts and Reduction Measures ----------------------------------- 9 Environmental Social Contribution Activities --------------------------------- - 15 Period and Content Period: Fiscal 2014 (April 2014 to March 2015) Content: Environmental aspects of PT Sharp Electronics Indonesia

SEID Environmental Report 2015

President Director’s Statement

PT Sharp Electronics Indonesia (SEID) continues its commitment to preserve environment and human to comply with the company vision to become an Eco Positive Company. Throughout the year of 2014-2015, Sharp has conducted various audit and training activities to empower the employees in promoting better applications of Reduce, Reuse and Recycle concept. Sharp also engaged with partners to evaluate the waste management to comply with policy. These activities were also be applied in Sharp new factory in Karawang. Meanwhile, Sharp has committed to improve the awareness of the community and younger generation through various range of Corporate Social Responsibility activities, such as environment, health, social, and education. Sharp has created positive image through branding activities which were featured in local and national media. As appreciations to these efforts, Sharp was awarded with several brand awards for its continuous contributions to people’s live in Indonesia by providing the best quality products. Further details were shown on the next pages. Thank you for your continuous support to Sharp.

Fumihiro Irie

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Company Name : PT. SHARP Electronics Indonesia President Director: Fumihiro Irie Pulogadung Plant Karawang Plant Jalan Swadaya IV, Rawaterate, Kawasan Industri KIIC Karawang Jl. Address : Cakung, Jakarta Timur - 13920 Harapan Raya Lot LL-1 dan LL-2, Kec. Indonesia Teluk Jambe Timur, Kabupaten Karawang, Jawa Barat - Indonesia Telephone / Fax : +62 21 46952456 / +62 21 46824067 +62 267 8468388 / +62 267 8468200 Total Area Employees Products

: 131.179 m2 : 727 Persons : LCD

307.334 m2 1231 Persons Factory 1 : Refrigerator Factory 2 : Washing Machine 2

Environmental Policy

Sharp CARES :

SEID has given attention to social issues in Indonesia and had willingness to help through its various programs. * Creativity * Attention * Recovery * Earth * Sincerity

1. Air-Friendly Products : Sharp support the green environment by continuing provide Plasmacluster, the environmentalfriendly technologies which works to eliminate virus, bacteria, and clean the air

2. Long-Lasting Value :

As a Japanese company leading in high-quality products, Sharp always confidents to give longer products quality than the competitors

3. Energy-Saving Products :

Sharp is a leading electronics company who has committed to provide products with energysaving feature to enable the customers in enjoying minimal electricity consumption

4. Renewable Energy :

Sharp is among the world’s best company in creating renewable energy through solar panels products which work to reduce CO2 emission.

5. Green Activities :

Protecting the environment is part of Sharp corporate values and commitment, and reflected in its various corporate responsibility programs which focus on environment, social, education, and health.

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Environmental Management Systems

EMS Structure and ISO 14001: 2004 certificate

President Director Management Representative (MR)

ICM - ISO Section

Compliance Internal Auditor

Factory

Procurement

Administration

- Green factory - Green product

Green procurement

- Waste handling - Fire system - Safety - Comply regulation

BSG CSR Activities

The Environmental Management in SEID has been organized by the top management together with Management Representative and ISO Section-ICM. It is also supported by the Internal Auditor team to ensure its continuous implementation of Environmental Management System as our compliance to ISO 14001:2004.

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Environmental Management Systems Environmental Education

The General Environmental Awareness Trainings were delivered to all staffs in New Employees Training program. The training covers all basic information of ISO 14001:2004, environmental issues, environmental policies, and environmental management programs. Sharp also conduct socialization regarding its green policies to all employees in SEID, suppliers, and local communities.

Environmental Audit

To maintain and assess Environmental Management System (EMS), SEID regularly conducts EMS performance review through its internal and external auditing for at least once a year.

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Environmental Objectives and Achievements Objectives in 2014 FY

Achievements in 2014 FY

Evaluation

1. Reduce CO2 emission Reduce electricity consumption

Achievement : 441.595 Kg CO2; Target : 668.858 Kg CO2

Achieved

Achievement: 11.300 ton; Target: 19.302 ton

Achieved

2. Reduce waste Reduce generation waste quantity

3. Comply all environmental Comply 100% all environmental regulation regulation

Achieved

4. Social contribution Blood donation

Done (Jun and Dec), in collaboration with Ind. Red Cross.

Achieved

Hydroponics Training

SEID gave training to 15 Participants (local community cadres) to develop their skills related to Hydroponics in August 2014.

Achieved

Handicraft Training for surrounding society

SEID gave training to 15 participants (local community cadres) to develop their skills in Jan 2015 and then income by selling their products.

Achieved

School Visit, Takumi Roadshow In 2014FY, SEID conducted CSR activity, School (CSR Activity) in 8 cities Visit to elementary school in 8 cities (Surabaya, Semarang, Tasikmalaya, Bogor, Manado, Palu, Kendari, Makasar). The aim of the programs are to emphasize Sharp green product 'Photovoltaic' and share information regarding electricity, and global warming. In the end of program, the children should make a storyboard regarding material given and should present it in front of class.

Achieved

Eco Study – Early Education on Sharp Eco-Study - Early Education On Environment Environment and Plant & Plant Propagation is one of SEID's CSR activities Propagation to introduce and educate elementary school students about how to preserve Indonesia's biodiversity. SEID carried out many activities, such as providing knowledge through interesting presentation, movies screening, practices, and field trip to the conservation area.

Achieved

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Environmental Objectives and Achievements Earth Hour 2015

SEID has supported WWF global campaign Earth Hour for 7 years in a row (2009-2015). Earth Hour is a global campaign of WWF (World Wide Fund) to reduce the rapid climate change.

Achieved

Commemorating The International Earth Day 2014

SEID held “Sharp Commemorating Earth Day 2014” at Bogor Botanical Garden, West Java. There were approximately 50 students from 4 senior high schools in Bogor participated in the event and 20 SEID employees. The event became very special because SEID also celebrated 100th Anniversary of Pohon Raja (King Tree/Koompassia excelsa), a South-East Asia giant endangered tree. The participants were taught about conservation, seedling, and site cleaning-up activities beside joined the site tour to get direct experiences as well as explanations regarding the botanical garden’s plants diversity.

Achieved

School Clean-Up Activity with Branch Promotion Staffs

Together with promotion employees from 26 branches throughout Indonesia in Branch Promotion Meeting 2014, SEID held clean-up activity in Purwadana II elementary school, Karawang, West Java, on May 10, 2014. The event was attended by no less than 200 hundred students and 50 SEID employees. SEID also do the school walls painting as well as donate water pump and cleaning tools.

Achieved

Commemorating The International Biodiversity Day 2014

SEID in cooperation with environmental education volunteer community Transformasi Hijau held CSR activity in Muara Angke conservation. SEID invited 20 employees and 50 students from 2 junior high schools in Jakarta to do clean-up activity, plant and bird watching, and also recycle workshop.

Achieved

Commemorating The International Environment Day 2014

SEID held CSR activity in 15,067 m2 of SHARP Mini Forest, SEID Karawang, on 25 June 2014 with rare tree planting as the major agenda to add the forest's tree collections. SEID invited 30 employees, 19 students from SMAN (public senior high school) 1 Teluk Jambe, Karawang, and 11 bloggers to increase the awareness about the importance of protecting the biodiversity, holes biopori, and waste management.

Achieved

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Environmental Objectives and Achievements Eco Study – Early Education on SEID conducted eco-educational activity 'Early Medicinal Plants & Honeybees Education on Medicinal Plants and Honey Bees'. In cooperation with Indonesian Institute of Science and Bogor Botanical Garden. SEID invited 70 students of grade 5 from Kebun Pedes V Bogor Elementary School and 20 employees to learn together about the variety of honey bees and Indonesia medicinal plants, as well as involved in honey harvesting and herbs making in a fun way.

Achieved

Commemorating The 21st National Love for Flora and Fauna Day 2014

To commemorate this special day, SEID introduced its newest AC product with R-32 eco-friendly technology on 05 November 2014 at Learning Farm, Ecopark Ancol Jakarta. SEID also planted some rare Indonesian trees such as Buni, Menteng, and Jamblang, and released 300 'Nila' fish, 200 'Mujair' fish (both are popular fishes in the country), 3 rabbits, and 2 squirrels for environmental preservation and to represent the number on R-32.

Achieved

SHARP Public Health Service

SEID holds free health check activity as part of the CSR program, titled ProSmiling or Community Health Program in Bekasi, West Java, 15 October 2014. In this activity, SHARP in cooperation with PKPU as the NGO provided general health screening and healthcare services for the villagers, pregnant women, and toddler, including vitamins, supplementary food, and medicine provision as well as nutritional status examination. Health education for mothers, nutriment cooking demo, recycling education, and washing hands with soap practice for early education children are also conducted.

Achieved

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Environmental Impacts and Reduction Measures 1. Electricity Usage 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 -

CO2 Emission From Electricity Usage (Kg CO2)

Apr. Jan. Mei Jun Jul Agu Sep Okt Nov Des Peb Mar 14 15 2014 FY 552, 548, 532, 559, 394, 499, 426, 439, 328, 298, 378, 339, Target 668, 668, 668, 668, 668, 668, 668, 668, 668, 668, 668, 668,

SEID conducted several efforts to reduce CO2 emission. To reduce electricity usage, SEID has applied some programs, such as replacing the mercury lamps with LED lamps, changing the warehouse’s regular roofs into transparent ones, controlling air conditioner usage with fixed temperature, changing conventional ballast with electronic ballast, adding windows film in Main Office to reduce electricity consumption of AC, and distributing energy-saving sticker/poster to its employees.

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Environmental Impacts and Reduction Measures 2. Minimization and Recycle of Waste

Total Waste (Ton) 25,000

20,000 15,000 10,000 5,000 0

Apr. 14

Mei

Jun

Jul

Agu

Sep

Okt

Nov

Des

Jan. 15

Peb

Mar

2014 FY 14,51 12,75 15,91 10,99 16,21 12,56 13,12 9,480 9,140 8,840 10,40 11,47 Target 19,3 19,3 19,3 19,3 19,3 19,3 19,3 19,3 19,3 19,3 19,3 19,3 In 2013 LH, SEID changed its waste classification four types to three types: Organic, Recycle, and utilized for composting, Recycle Waste will be Waste will be stored in government-approved collector.

system which was previously divided into Hazardous Waste. Organic Waste will be sold to the collectors, while Hazardous TPS (temporary storage) for authorized

Composting of Organic Waste garbage in the cut with a knife

in the given chemical

results after 2 weeks average 25 Kg / month

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Environmental Impacts and Reduction Measures 3. Management of Hazardous Material and Waste

In order to control Hazardous materials and wastes, SEID has also conducted regular inspection in its area, monthly (for Hazardous material) and daily (for Hazardous waste) to comply with the government policies regarding environment.

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Environmental Impacts and Reduction Measures 6. Compliance with Environmental Regulations Generator Set Chimney measurement Semester II 2014 Parameter STD

Unit 5-09

5-10

5-11 5-12 6-01

24.6

23.7

30.6

NO

1000 mg/Nm3

SO2

800 mg/Nm3